It is known that DEF Ltd has never issued preferred stock. The following information is acquired from the financial statements of DEF Ltd in the year of 2020:

Gross Profit = $50,000

Inventory = $100,000

Sales Revenue = $250,000

Dividend Payout Ratio = 90%

Total Dividend = $9,000

Current Assets = $150,000

Current Liabilities = $100,000

Total Assets = $1,000,000

Total liability = $600,000

The following data in the year of 2019 is given:

Quick ratio = 0.4

Inventory Turnover = 3

Net profit = $80,000

Return on equity = 1.8%

a) Calculate the quick ratio and the inventory turnover for the year of 2020. (6 marks)

b) Calculate the amount of net profit and the return on equity for the year of 2020.

c) Comment the liquidity and profitability of the firm with not more than 120 words in the year of 2020.