3. Following are the financial statements of ABC Ltd. for 2010: Marka 5] 400 500 Balance sheet (s in millions) Assets 2010 Liabilities and 2010 owners' equity Current assets: Current liabilities: Cash 200 Accounts payable Accounts receivable 500 Bills payable 100 Inventory 400 Total current liabilities Total current assets 1.100 Long-term liabilities: Long-term debt Fixed assets: Total long-term liabilities Property, plant, and 2400 Shareholders funds: equipment Less: Accumulated 2.100 Equity share capital depreciation (S1 per share) Net fixed assets 300 Reserves & Surplus 500 Total owners' equity 70 1,498 200 Income statement (S in millions) 2010 Sales 3,400 Cost of goods sold 1.200 Office and selling 600 expenses Depreciation 102 Earnings before interest and taxes Interest expense 10 Earnings before taxes 1.488 Taxes 607 Net income 191 Dividends 635 Transfer to reserves and 246 surplus Other information Number of shares 200 Outstanding (millions) Price per share 7.31 200 Total assets 1,400 1400 Total liability and owners' equity Requirement: Calculate and interpret following ratios: Current ratio Liquid ratio Receivables turnover ratio and collection period Inventory turnover and holding period Fixed assets turnover