3 (24 marks) Omega Bank is evaluating the lending proposals for two corporate clients, Alpha Limited and Beta Limited. Omega Bank will lend to one of these two corporations based on credit risk consideration only. A comparative view of the Statement of Financial Position between Alpha and Beta as of December 31, 2021 is presented below. Statement of Financial Position As at Dec 31, 2021 ($'000) ASSETS ALPHA BETA Current Assets: Cash 20,000 19,000 Accounts Receivable 40,000 39,000 Inventory 30,000 22,000 Total Current Assets 90,000 80,000 Non-Current Assets 500,000 550,000 TOTAL ASSETS 590,000 630,000 LIABILITIES Current Liabilities 45,000 37,000 Non-Current Liabilities 200,000 150,000 TOTAL LIABILITIES 245,000 187,000 TOTAL EQUITY 345,000 443,000 Required: (a) Compute the following liquidity ratios for Alpha Limited and Beta Limited. (i) Current Ratio (ii) Quick Ratio (Acid-Test Ratio) (b) Compute the following solvency ratios for Alpha Limited and Beta Limited. (i) Debt to Equity Ratio (ii) Long-Term Debt to Equity Ratio (8 marks) (8 marks) (c) Based on the results in part (a) and (b), propose and explain which corporation Omega Bank should lend the money to. Suggest one deficiency of analyzing the Statement of Financial Position alone to evaluate credit risk. (8 marks)