its very urgent

At the end of 2019, Baby Ltd. faced increasing competition leading to a build up of inventory and declining profitability and liquidity. In an effort to generate more revenue and improve the company's financial position, the management team determined that the best course was to reduce prices and extend generous credit terms that would generate higher sales and cash flow. The results of the initiative are show in the following table: Ratio 2019 2020 Industry Current Ratio 2.2 1.9 2.0 Accounts Receivable 7.1 5.2 6.8 Turnover Inventory Turnover 3.6 6.4 4.2 Gross Profit Margin 55% 51% 53% Profit Margin 14% 10% 12% Return on Equity 26% 22% 27% Times Interest Earned 5.3 3.4 4.9 Debt to Assets 59% 58% 4% Free Cash Flow (thousands) $127 $99 $129 *Capital expenditures remained unchanged and no dividends were declared. Using the above information to support your answer, complete the following analysis in your own words: 1. Discuss Baby Ltd's liquidity. (2 marks) 2. Discuss Baby Ltd.'s profitability. (2 marks) 3. Discuss Baby Ltd.'s solvency. (2 marks) 4. Conclude on the success of managements initiative and explain the reason for your conclusion. (2 marks)