(a) Calculate the following ratios in respect of Supernova Corporation for 2019: 1. P/E ratio 2. Quick ratio 3. Inventory turnover ratio 4. Interest coverage ratio 5. Dividend yield (%) Carry your answers to 2 decimal places. (13 marks) (b) Suppose, for 2019, the industry average quick ratio of ultrasound trading sector is 1.75. Based on the above industry average and your calculation in (a) above, comment on Supernovas short term liquidity for 2019. (2 marks)

Given below are comparative Balance Sheet and an Income Statement for Supernova Corporation, a company trading ultrasound systems: Cash Accounts receivable Inventory Prepaid rent (short term) Equipment (net) Supernova Corporation Balance Sheets 31 December 2018 and 2019 2019 (S) 102,000 372,000 180,000 24,000 450,000 1,128,000 2018($) 42,000 234,000 255,000 33,000 390,000 954,000 Accounts payable Dividends payable Long-term note payable Capital stock, $30 par Retained earnings 222,000 105,000 156,000 360,000 285,000 1,128,000 150,000 66,000 156,000 360,000 222,000 954,000 Supernova Income Statement For the year ended 31 December 2019 Net sales $ 1,572,000 Cost of goods sold (984,000) Gross profit 588,000 Operating expenses (356,100) Operating income 231,900 Interest expense (29,250) Income taxes expense (57,000) Net income 145.650 Supernova's share price as at 31 December 2019 was $17