Wolszczak Lid has issued convertible notes under an agreement to maintain net assets, defined in the agreement as assets mimas all liabilities except the comvertible notes, at an amount not less than 2 times the amount of the comvertible notes isaed Also under the agreement, working capital is to be maintained at not less than 100% of the convertible notes issued. Certain financial information for Wolszczak Lid is prosented b below: WOLSZCZAK LTD Adjusted Trial Balance As at 30 June 2012 Debits Crodits Cash at bank Marketable securities Accounts receivable Allowance for doubtful debts SI00.000 750.000 740.000 $30,000 Inventories so0.000 60,000 Prepaid expenses Land Buildings Accumulated depreciation - buildings Equipment Accumulated depreciation - equipment Accounts payable Loan payable (due 30 June 2013) Accrued expenses payable Convertible notes 180.000 1560000 210,000 L40.000 420,000 690,000 750,000 60,000 2000,000 1,200,000 Share capital - ondinary Retained eamings 670,000 $6.030.000 S6,030,000 Additional information 1. Wolszczak Lad had recorded as at 30 June 2012, S160,000 of collections from its customers that were not received until 2 July 2012 on the basis that such collections were probably in the mail hefore midnight on 30 June 2012 In the afternoon of 2 July 2012, Wolczak Lad issued cheques to its creditors, dating and recording the cheques as at 30 June 2012. The cheques amounted to S160,000, which is equal to the collections in transit 2. 3. Wolszczak Ltd is considering a 1-day extension on the due date of the loan payable to I July 2013. Required a) Contrast, by means of comparative ration, the reported conditions with those that you believe more appropriately represent the financial position of the company. Limit your comparison to the convertible note holdens" agreement. (15 marks) b) Has the company met the conditions of the agreement Explain. (15 marks)