Hang Heng Corporation engages in wholesaling and retailing of children toys and books in Hong Kong. Condensed statements of financial position and income statements for Hang Heng Corporation are as follows: STATEMENT OF FINANCIAL POSITION DECEMBER 31 Plant and equipment (net) Long Term Investments Accounts receivables (net) Inventory Other current assets Cash 2019 300,000 582,000 54,000 124,000 60,000 222,000 1,342,000 2018 266,000 480,000 48,000 119,000 111,000 144,000 1,168,000 2017 240,000 412,000 60,000 79,000 101,000 122,000 1,014,000 Current liabilities Long-term debt Ordinary shares, $10 par Retained earnings 136,000 154,000 400,000 652,000 1,342,000 116,000 104,000 400,000 548,000 1,168,000 112,000 98,000 360,000 444,000 1,014,000 + HANG HENG CORPORATION INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 Sales Less: Sales allowances Net sales Less: Cost of goods sold Gross profit Operating expenses Less: Interest expense Less: Income tax Net income 2019 798,000 12,000 786,000 444,000 342,000 180,000 20,000 30,000 112,000 2018 812,000 18,000 794,000 414,000 380,000 190,000 16,000 24,000 150,000 + Required: (1) Compute the following ratios for 2019 and 2018 (round up your answers to 2 decimal places). i. Current ratio ii. Inventory turnover iii. Receivable tumover (Assumed that all sales are credit sales) iv. Profit margin v. Return on assets vi. Eamings per share (Weighted average ordinary shares in 2019 were 400,000 and in 2018 were 380,000) vii. Times interest earned ratio (14 marks) (2) Based on your analysis above, comment on the change in liquidity and profitability for the company from the year 2018 to 2019. (6 marks)