Part B Practical questions 1.The following financial information has been taken from the year-end accounts of Wellington's Tulip Tower hotel. Year 20X1 20X2 Cash at bank $ 20,000 $ 24,000 Accounts receivable 11,500 13,500 3,400 4,200 Prepaid expenses Inventory Current liabilities 10,900 12,000 32,000 31,000 I Long-term debt 250,000 232,000 EBIT 285,000 321,000 Interest on debt 16,000 14,300 Total assets 450,000 465,000 You Required: a) For 20X1 and 20x2 calculate Tulip Tower's: i. Current asset ratio ii. Acid test ratio 1 b) From your answers to a), comment on Tulip Tower's liquidity status in 20X1 and 20x2. c) For 20X1 and 20x2 calculate Tulip Tower's: i. Debt to assets ratio 2 x4 = 8 marks