1.1 Calculate the following ratios from the information provided below. Where applicable, round off answers to two decimal places. 1.1.1Current ratio 1.1.2 Acid-test ratio 1.1.3 Debt to asset 1.1.4 Debt to equity 1.1.5 Profit margin 1.1.6 Return on assets 1.1.7Return on equity 1.2 Use the appropriate ratios from question 1.1 to comment on the liquidity of the company. 1.3 Will the shareholders be happy with the return on their investments? Explain.

INFORMATION The extracts of the financial statements of Gianni's Limited for 2018 are provided below Gianni's Limited Extract of Statement of Comprehensive Income the year ended 31 December 2018 Sales Cost of sales Operating profit Profit before tax Profit after tax 1 900 000 1 200 000 440 000 380 000 266 000 Extract of Statement of Financial Position as at 31 December 2018 Non-current assets Inventories Accounts receivable Cash and cash equivalents Equit Non-current liabilities Current liabilities 2 400 000 520 000 600 000 400 000 3 000 000 500 000 420 000