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Case 8 (10 marks) The following ratio analysis was prepared for you for a business for the past three years. Ratio Year 2017 Year 2018

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Case 8 (10 marks) The following ratio analysis was prepared for you for a business for the past three years. Ratio Year 2017 Year 2018 Year 2019 Industry average Current ratio 1.9 1.7 1.5 1.7 Receivable 6.6 5.9 4.6 3.5 turnover Acid test ratio 1.2 1.1 1.2 1.0 Required: Comment on the liquidity and financial stability aspects of the business. In you answer provide suggestions as to how management might implement to help improve the liquidity and financial stability of the business

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