Calculate (and document) suitable ratios with respect to of a) liquidity, b) solvency, c) profitability and d) efficiency BRIEFLY (maximum of 400 words) use these ratios to respond to the following 3 questions. Long rambling answers will not be graded if you understand the ratios, you can be precise in answering. If this company approached you to buy your product on your normal 30-day trade credit terms, would you extend them trade credit. Justify your agreement to sell to them or not to sell to them using financial ratios If this firm approached you to lend them long term funds, would you advance funds to them. Why or why not. Explain and quantify why the percentage return on equity to shareholders is significantly higher than the percentage of operating return on assets used. Data Set CUSABA INCORPORATED - BALANCE SHEET AS AT DECEMBER 31, 2019 ASSETS LIABILITIES AND EQUITY Cash $27,000 Accounts Payable $112,500 Marketable Securities 7,500 Bank Loan 262,500 Accounts Receivable 675,000 Accrued Expenses 4,500 Inventory 487,500 Interest Payable 1,500 Prepaid Expenses 10,500 Long Term Bonds Payable 255,000 Property Plant and Equipment 247,500 Common Stock 264,000 Goodwill 45,000 Retained Earnings 600,000 Total Assets $1,500,000 Total Liabilities and Equity $1,500,000 CUSABA INCORPORATED - INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 Sales (all on credit) $2,700,000 Cost of goods sold 1,800,000 Gross profit 900,000 Selling and admirative expense 375,000 Depreciation 30,000 Operating Income 495,000 Interest Expense 46,500 Earnings before taxes 448,500 Income Taxes 112,500 Net Income $336,000