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A. Omega Logistics-Transportations plans to ask external funding in order to pursue new investments. In order to assess the financial situation of Omega you are required to calculate the following amounts and ratios for years 2021 and 2022: a) working capital b) current ratio c) acid-test ratio d) cash ratio e) debt to asset ratio f) interest coverage ratio g) return on assets h) return on equity Assess the above indicators and amounts. What would you suggest to someone who is considering lending money or invest to Omega Logistics-Transportations? (15%) B. Calculate the Altman Z-score for the private company Omega Logistics- Transportations for the years 2021 and 2022. Do your findings alternate your suggestions in Activity A? Provide your explanation

The Balance Sheets of "Omega follows (all amounts are in euro): Assets Current Assets Cash in Bank Accounts Accounts Receivable Inventories Prepaid rent Other receivables Total Current Assets Long-term Assets Property, plant and equipment (warehouse) Total Long-term Assets Total Assets Logistics-Transportations" for 2021 and 2022 are as Balance Sheet Statement - Omega Logistics-Transportations 2022 2021 Liabilities & Shareholders' 2022 2021 Equity Short-term Liabilities 180,000 90,000 Short-term debt 120,000 99,000 339,000 237,000 Accounts payable 301,800 172,500 321,300 320,700 Income taxes payable 60,000 50,000 17,100 18,300 60,000 50,000 Total Short-term Liabilities 481,800 321,500 917,400 716,000 Long-term Liabilities Long term loan 1,200,000 1,230,000 Total Long-term Liabilities 1,200,000 1,230,000 1,980,000 1,995,000 1,980,000 1,995,000 Total Liabilities 1,681,800 1,551,500 Shareholders' Equity 600,000 600,000 Common Stock Retained earnings 615,600 559,500 Total Shareholders' Equity 1,215,600 1,159,500 Total Liabilities and 2,897,400 2,711,000 | Shareholders' Equity 2,897,400 2,711,000 Income Statement - Omega Logistics-Transportations 2022 2021 2,250,000 1,350,000 (1,440,000) (810,000) 810,000 540,000 (75,000) (67,500) (150,000) (135,000) (225,000) (202,500) 360,000 135,000 (21,600) (49,500) 338,400 85,500 (67,680) (17,100) 270,720 68,400 Revenues Cost of Goods Sold Gross Income Selling, general and administrative expenses (SG&A) Personnel expense Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Expenses Income Before Taxes Taxes Net Income

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