You are advised, where applicable, to make use of an Amortization Table. Failure to populate the missing figures correctly WINDHOEK LOGISTICS AND SUPPLY CHAIN CC STATEMENT OF COMPREHENSIVE INCOME (EXTRACT) - 31 DECEMBER Sales revenue Less: Cost of sales Gross profit Total operating expenses 2021 Notes N$ 2020 N$ 1 600,000.00 390,000.00 750,000.00 562,500.00 210,000.00 187,500.00 60,000.00 60,000.00 EBIT 150,000.00 127,500.00 Finance cost: FNB Loan 2 ? ? EBT ? ? Taxation @ 30% ? ? Profit for the year ? WINDHOEK LOGISTICS AND SUPPLY CHAIN CC STATEMENT OF FINANCIAL POSITION (EXTRACT) - 31 DECEMBER 2021 2020 Notes N$ N$ 800,000.00 750,000.00 NOTES: 1. The company has a 100% credit policy. 2. The finance cost is in respect of the N$300 000 Loan that Windhoek Logistics and Supply Chain CC obtained from FNB on 1 January 2020. The Loan is payableinto two yearly equal instalments at the end of each year, at an interest of 8% per annum. 3. For both years, the total current assets includes 18% and 20% of inventory andaccounts receivable, respectively. The balance is for other receivable. 4. No common stocks were issued over the two years. Thus, the company opted for debt fiannce as pointed out in Note 1, above; being considered the cheapest way of raising fiance. 5. No dividends were declared nor paid over the two years. 6. Given the successful settlement of the initial advancement of the N$300 000 @ 8% p.a. over two years, another Loan of N$180 000 was concluded on 31 December 2021. This second loan carries exactly the same credit terms as that ofthe former. 7. The total current liabilities is made up of accounts payable only. REQUIRED: Assume a 365 days-calendar year. Please number your answers correctly. 1.1. What is the logic behind the concept of time value of money, and what comes to your once as soon as you read the word 'ratio'? 1.2. On the basis of the following ratios, given the task that you have been entrusted with by your employer, what would your recommendations be (please show all your workings not only clearly, but in a very coherent manner): HOW LIQUID IS WLSC? MARKS iii. iv. i. ii. Quick ratio Inventory turnover ratio Average Collection Period on Accounts Receivable v. Accounts Receivable Turnover Ratio Current ratio 30 NON-CURRENT ASSETS: Property, Pland and Equipment CURRENT ASSETS: Total current assets 3 209,999.08 230,000.23 TOTAL ASSETS ? ? EQUITY AND LIABILITY: Share capital 4 600,000.00 600,000.00 Retained earnings 5 ? ? TOTAL EQUITY ? ? LONG-TERM LIABILITEIS: Loan: FNB @ 8% over 2 years 6 180,000.00 ? CURRENT LIABILITIES: Total current liabilities 7 133,723.00 151,781.00 TOTAL EQUITY AND LIABILITIES ? ? 1.3. HOW HAS WLSC FINANCED ITS ASSETS, AND WILL IT BE ABLE TO SERVICE ITS DEBT? i. ii. Debt ratio Times interest earned ratio 1.4. HAS WLSC EARNED ADEQUATE RETURNS ON ITS INVESTMENTS? THESE RATIOS ENSURE GOING CONCERN THEREBY ENSURING RELIABILITY OF WLSC AS YOUR SUPPLIER. i. Gross profit margin ii. Net profit margin