2018 The financial statements of Indigo Limited are as follows Indigo Limited Statement of Financial Position As at December 31, 2019 and 2018 2019 Assets Current assets Cash $22.500 Accounts receivable 100,000 Inventory 57,500 Prepaid insurance 15.000 Total current assets 195.000 Property, plant and equipment, net 600.000 Total assets 5795.000 $15.000 127.500 22.500 22.500 187.500 472.500 S660.000 Liabilities Current liabilities Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Total liabilities 560,000 37.500 597,500 112.500 210,000 $75,000 60,000 $135,000 225.000 360,000 $225,000 75.000 300,000 $650.000 Shareholders' Equity Ordinary shares, $100 par S435.000 Retained earnings 150,000 Total shareholders' equity $85.000 Total liabilities and equity $795.000 Indigo Limited Income Statement For the year ended December 31, 2019 2019 Sales (all on credit) $600,000 Less: Cost of goods sold 315.000 Gross profit 285.000 Less: Operating expenses 82.500 Operating profit 202.500 Less: Income tax expense 40.500 Profit for the year $ 162.000 (14 marks) QUESTION 6 (continued) Required: (Show all calculations and round ALL answers to 2 decimal places.) 2. Calculate the following ratios for Indigo Limited for the year 2019: i) Current ratio 1) Quick ratio ii) Return on assets iv) Return on equity Inventory tumover rate vi) Earnings per share b. Based on the ratios calculated in (a) explain to a shareholder why the current ratio and the quick ratio are different. Do you observe any liquidity problems of Indigo Limited? Explain (6 marks)