A company may decide to retire bonds before maturity to reduce interest cost and remove debt from its statement of financial position. A company will retire debt early only if it has sufficient cash resources. When bonds are retired before maturity, it is necessary to eliminate the carrying value of the bonds at the redemption date and recognize a gain or loss on redemption. The gain or loss is the difference between the cash paid and the carrying value of the bonds. Required i. Explain the requirements for the financial statement presentation of long-term liabilities. (4 marks) ii. Explain the ratios that may be computed to evaluate a company's liquidity and solvency. (4 marks) iii. It is without a doubt that the COVID-19 situation has impacted global markets. It is an unprecedented event and many businesses have been taken by complete surprise with the way things have been unfolding. Let say, if you are an active investor, discuss three suitable ratios that you are going to use to evaluate the condition of the business in order to make a good investment decision. (6 marks)