MZ plc, a construction company, has approached its bank for a 5 million long-term loan to finance the proposed business expansion plans. You are a credit analyst in the bank and you have been provided the following information from the latest financial statements of the company. Year ended 31 March Return on capital employed Gross profit margin Net profit margin Operating expenses margin Asset turnover Inventory turnover Receivables collection period Payables payment period Cash cycle Current ratio Acid test (liquid) ratio Required: 1. Calculate the missing ratios. (6 marks) 2. Write a report to your manager which: 20X4 ?% 22% 9% ?% 1.5 5 times 46 days 26 days ?% 1.3 0.9 20X5 ?% 23.5% 12.5% ?% 1.2 4 times 35 days 34 days ?% 1.1 0.8 analyses the financial performance and position of the company based on these ratios recommends whether the bank should be willing to lend. (14 marks)