+ 8/Betty has opened a children bookstore, Beau's Books, in Ballarat for five years. She is interested to know the performance of her business. The statement of financial position and income statement for the year ended 30 June 2018 and 2019 are shown below: Assets Cash Accounts receivable Inventory Non-current assets (net) Total assets Beau's Books Statement of Financial Position As at 30 June 2019 2018 ($) ($) 500 1,000 2,000 4,000 2,000 3,000 10,500 12,000 15,000 20,000 Liabilities and shareholders' equity Accounts payable Long-term borrowings Capital 2,000 4,000 4,000 6,000 9,000 10,000 Total liabilities and shareholders' equity 15,000 20,000 Beau's Books Statement of Financial Position As at 30 June 2019 2018 ($) ($) 80000 90000 Sales revenue less: cost of sales 25000 30000 Gross profit 55000 60000 less: operating expenses 20000 30000 less: income tax Net profit 10000 12000 25,000 18,000 Additional information: Total assets as at 1 July 2017 were $25,000. Total equity as at 1 July 2017 was $15,000. Total inventory as at 1 July 2017 was $4,500. Total Payables as at 1 July 2017 was $2000 Total Receivables as at 1 July 2017 was $2000 The industry average of the financial stability ratio for similar businesses is also provided: debt ratio 45% assets turnover ratio 4.0 Quick Ratio 1.0 Inventory turnover 6 Current Ratio 2 Required (a) Calculate the following ratios for 2018 and 2019: (a) Short term liquidity ratios (any two) (4 marks) (b) Efficiency Ratios (any two) (4 marks) (c) Profitability Ratio (any one) (10 marks) (2 marks) (b) Make an analysis of the business performance by commenting on the liquidity (2 marks), Efficiency (2 marks) and profitability performance (1 mark) of the business based on the ratios calculated above in part (a). Make sure that you compare the ratios of this business with the industry average as a part of your analysis of the business performance