Below are the financial statements for Better Tomorrow Ltd: Statements of Financial Position 2022 and 2021 Assets Cash 2022 2021 $ 100,000 $ 160,000 Accounts receivable (net)... Prepaid expenses.. Inventory Property, plant and equipment.. Total assets Liabilities and Equity Accounts payable. Salaries and wages payable. Debentures payable Share capital....... $ 160,000 60,000 240,000 200,000 120,000 600,000 680,000 640,000 800,000 $1,600,000 $2,000,000 $ 300,000 80,000 360,000 320,000 622,000 680,000 418,000 Retained earnings 360,000 300,000 Total liabilities and equity.. $1,600,000 $2,000,000 Income Statement For the year ended 31 December 2022 Net sales (on credit) $3,500,000 Cost of sales 2,600,000 Gross profit 900,000 Expenses Administrative expenses. Selling expenses Interest expense Total expenses Profit before income tax Income tax expense $95,000 120,000 80,000 295,000 605,000 181,500 $ 423,500 Profit after tax Required: a) Compute the following ratios for Better Tomorrow for 2022 (2 marks): i. Quick ratio ii. Debt to total assets iii. Returns on asset iv. Times interest earned b) Independent of part (a), if below are some selected ratios for a Greater Tomorrow Ltd and its competitor (Prosperity Ltd), evaluate the entity's solvency relative to its competitor using only the relevant ratios (1 mark). Greater Tomorrow Prosperity Debt to total assets Times interest earned Ltd (2022) 20% 10.5 times Ltd (2022) 70% 1.5 times Average collection period 60 days 50 days