Below are the financial ratios calculated from the 2020 annual report of PVC Pipes Ltd. Ratio 2020 2019 Current 1.52x 1.48x Quick 1.01x 0.98x Average collection period 65 days 58 days Days inventory held 36 days 28 days Days payable outstanding 61 days 47 days Cash conversion cycle 40 days 39 days Fixed asset turnover 4.91x 4.02x Total asset turnover 1.70x 1.43x Debt to total assets. 67.10% 63.08% Long Term debt to total capitalization 46.82% 42.51% Times interest earned (5.10x) 1.65x Fixed charge coverage (2.34x) 1.40x Cash flow adequacy 0.32x 0.87x Gross profit margin 10.10% 12.81% Operating profit margin (5.93%) 2.75% Net profit margin (4.98%) 0.91% Cash flow margin 3.84% 7.00% Return on assets (8.63%) 1.28% Return on equity (25.49%) 3.51% Cash return on assets 6.90% 9.10% REQUIRED: a) Using the financial ratios above, illustrate the short-term liquidity, operating efficiency, capital structure and long-term solvency and profitability of PVC Pipes Ltd. (40 marks)