HIDE Question 4 Calculate and interpret liquidity ratios (10 marks) a) Calculate the ratios below from the given information for Corona Retail Co. (4 marks) b) Analyze the ratios and suggest possible ways to improve company performance. (6 marks) Selected information for Optimal Retail Co. ($) Net Sales (90% on credit) 2020 2019 2018 610,000 420,000 340,000 Cost of Goods Sold 478,000 301,000 226,000 Net income 58,900 24,500 22,000 Inventory 50,000 29,500 25,000 Accounts receivable 52,000 31,000 25,000 Allowance for doubtful accounts 4,000 10,000 6,000 Bad debt expense 3,500 8,800 5,400 2020 Accounts Receivable turnover Average Collection period Inventory Turnover Days in Inventory 2019