B. Discuss the general limitations of financial statement analysis.

The following information relates to the Microscope company. The owner, Bill Gates is concerned about the liquidity of his business at 30 June 2020, especially since the bank is requiring repayment of the business's overdraft. 30 June 2020 Current ratio 2.2:1 Quick ratio 1.2:1 Receivables turnover ratio 13 times Average collection period of accounts receivable 28.1 days Inventory turnover ratio 3.3 times Average period for inventory turnover 110.6 days A. Write a short report to the owner analysing the liquidity of Microscope company