1.2 Table 1.2 shows the Ratio Analysis of Casto Ptd. Ltd. The analysis covers a three financial year period of 2016 to 2018 Table 1.2. Ratio Analysis of Casto Ptd. Ltd Year 2016 Ratio Current Quick 1.4 Year 2017 1.5 1.1 Year 2018 1.45 1.15 1.2 Inventory Turnover Debtor Turnover Asset Turnover 0.98 2.46 3.65 1.02 2.50 3.82 0.97 2.55 3.73 Debt to Equity Debt to Asset 1.01 1.95 2.48 2.36 3.05 3.78 Gross Profit Margin Net Profit Margin After Tax Return to Asset Return on Equity 2.67 0.69 1.50 2.67 2.81 0.67 1.70 2.74 2.78 0.61 1.60 2.79 a) As part of Casto's strategic management, it is planning a corporate strategy of growth and diversification through development and marketing of new products. However, such an effort will require a large amount of financial capital. The company plans to take up another long term loan to finance this plan. Give your opinion regarding taking another long term loan to finance the plan. Select TWO (2) appropriate ratios to explain and justify your opinion. (6 marks) b) Study the ratio analysis of Casto Ptd. Ltd. and identify ONE (1) weakness of this company. Justify this weakness using relevant ratio values. Propose TWO (2) suggestions on how this weakness may be overcome. (6 marks)