You have recently attended a workshop aimed at improving your understanding of company Annual Reports using Tesco’s report as an example. During the workshop you looked at the following sections of Tesco’s annual report:  The Strategic Report including the Environmental and Social Review,  The Corporate Governance Report and,  The Group Statements of: ‘Income’ (also sometimes referred to as the Statement of Profit and Loss) ‘Balance Sheet’ and ‘Cash-Flows’. You learned about how different ‘stakeholders’ may use the information contained in these reports and financial statements. You also learned about financial ratios and how these can be used to interpret and assess the performance of a business in terms of its profitability, liquidity, efficiency and return to investors. The timing of the workshop was very fortuitous. You are the Purchasing Manager for the business you work for. You are in the process of letting a contract for the supply of an important component used in your business’s production. You have been provided with the financial statements of Benedict Co. who are one of a few companies tendering for the contract. The income statement and statement of financial position have been reproduced below. As well as reviewing the financial statements of Benedict Co. from a potential customer perspective, you are interested in how the company may be viewed by potential investors, lenders and suppliers. You have also collected the following information about other companies operating in the same sector as Benedict Co.: Current ratio 1.6 Quick ratio 1.0 Trade receivable days 55 days Inventory days 60 day