Amber Ltd has the following statement of financial position:

Statement of financial position before set-off

Loans Payable 3,000, 000 Loans receivable 3,600,000

Shareholders equity 3,000, 000 Non-current assets 2,400,000

6,000,000 6,000,000

Assume that Amber Ltd has an amount owing to Robyn Ltd of $900,000 and an amount receivable from Robyn Ltd of $1,200,000. Assuming a right of set-off exists, why would Amber Ltd. want to perform a set-off? What would be the impact on the debt to assets ratio?