Financial information for Mario Ltd is presented here.

MARIO LTD Statement of Financial Position as at 31 December
	2019	2018
	$	$
ASSETS
Cash	50,000	42,000
Short-term investments	80,000	50,000
Receivables (net of allowance for doubtful accounts of $4,000 for 2019 and $3,000 for 2018)	100,000	87,000
Inventories	440,000	300,000
Prepaid expenses	25,000	31,000
Land	75,000	75,000
Building and equipment (net)	570,000	400,000
Total assets	$1,340,000	$985,000
LIABILITIES AND EQUITY
Short term provisions	125,000	25,000
Accounts Payable	160,000	90,000
Accrued Liabilities	50,000	50,000
Bonds payable, due 2021	200,000	100,000
Share capital (100,000 shares)	500,000	500,000
Retained earnings	305,000	220,000
Total liabilities and equity	$1,340,000	$985,000
MARIO LTD Statement of Profit or Loss for the year ended 31 December
	2019	2018
	$	$
Sales	1,000,000	940,000
Cost of sales	(650,000)	(635,000)
Gross profit	350,000	305,000
Finance cost	(20,000)	(10,000)
Operating expenses	(115,000)	(145,000)
Profit before tax	215,000	150,000
Tax expense	(100,000)	(70,000)
Profit	$115,000	$80,000

Additional information:

1. Inventory at the beginning of 2018 was $350,000.
2. Receivables at the beginning of 2018 were $80,000, net of an allowance for doubtful debts account of $3,000.
3. Total assets at the beginning of 2018 were $1,175,000.
4. No share capital transactions occurred during 2018 or 2019.
5. All sales were on account.

Required

1. Please calculate the following ratios, for 2019 and 2018, using the information from Mario Ltd:

• Liquidity: Current, Quick, Receivables Turnover, and Inventory Turnover.
• Profitability: Profit Margin, Asset Turnover, Return on Assets, and Earnings Per Share.

2. Based on your calculations, explain the changes in liquidity and profitability of Mario Ltd from 2018 to 2019. That is, has each ratio improved/declined, and what does this movement mean?
3. How can Mario Ltd improve their Receivables Turnover and their Inventory Turnover?