Calculate and interpret the following financial ratios for year 2019 and 2020 accordingly:

(a) Calculate and interpret the following financial ratios for year 2019 and 2020 accordingly:

QUESTION 2 (25 MARKS) (UNIT 1) CCC Stationary Bhd Statement of Financial Position as at 31 December 2020 (RM in millions) RM 2019 RM 2020 Assets Cash and equivalents Accounts receivable Inventories Total current assets 245 429 609 1,283 282 435 475 1192 Fixed assets Less: Accumulated Depreciation Net fixed asset Total assets 4890 1032 3858 5698 1236 4462 5654 5,141 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities 389 102 156 647 473 254 234 961 Long-term debt Total liabilities 1,127 1,774 1234 2195 Common Socks Retained earnings Total equity Total liabilities and equity 1,000 2,367 3,367 5,141 1000 2459 3459 5654 (a) Calculate and interpret the following financial ratios for year 2019 and 2020 accordingly Page 3 of 5 4/5 BBF302/05 FINANCIAL MANAGEMENT AND ANALYSIS JANUARY 2021 ASSIGNMENT 1 i. Liquidity ratios Current ratio Quick ratio (5 marks) (5 marks) Debt ratios Long-term debt ratio i. (5 marks) (b) Describe FIVE (5) benefits of improving the financial ratios for the firm. (10 marks)