Lovepreet International Corporation Balance Sheet December 31, 2019 and 2018 2019 2018 Current assets Cash Short-term investments Accounts receivable, net Inventory Prepaid expenses Total current assets $32,000 8,000 9,000 37,000 14,000 $100,000 $5,000 10,000 23,000 35,000 3,000 $76,000 Property, plant, and equipment, net Other assets Total assets 33,300 37,000 $170,300 35,000 22,500 $133,500 Current liabilities Short-term borrowings Accounts payable Total current liabilities $40,400 30,000 $70,400 $13,900 22,500 $36,400 Non-current debt Total liabilities 37,500 $107,900 33,000 $69,400 Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $20,000 42,400 $62,400 $170,300 $20,000 44,100 $64,100 $133,500 Additional information for year 2019: Net income from operations Interest expense Depreciation expense Cost of goods sold Net credit sales $38,600 $4,650 $4,700 $166,000 $405,000 Industry bench marks: current ratio 1.50 acid test 1.00 debt ratio .62 inventory turnover 4.10 receivable turnover 30.1 Required: Calculate the following 2019 ratios for the company: Current ratio Acid test Inventory turnover Accounts receivable turnover Debt ratio Times interest earned Based upon your calculations comment on the company's ability to: 1) pay their current liabilities 2) meet their overall liabilities 3) to sell inventory and collect accounts receivables