Frank Wright runs a small bakery. He is concerned with the liquidity position of his firm as he has heard that liquidity problems are one of the most frequent explanations for business failure. The following data is available:

Particulars	Amount
Inventory Cash Sundry Debtors Creditors Bills Receivable Bank Overdraft	1,50,000 50,000 300,000 350,000 30000 30000

Required

Q1. Calculate the current ratio and liquidity (acid test) ratio based on the above data.(8 marks)4 marks on each ratio calculation Q2. Give a brief evaluation of the liquidity position of Frank Wright's bakery(2marks)