Practise Exam 2: Please show all necessary working out. Thank you!!

Financial information for Mario Ltd is presented here. MARIO LTD Statement of Financial Position as at 31 December 2019 2018 $ SS ASSETS Cash 50,000 42,000 Short-term investments 80,000 50,000 Receivables (net of allowance for doubtful accounts of $4,000 100,000 87,000 for 2019 and $3,000 for 2018) Inventories 440,000 300,000 Prepaid expenses 25,000 31,000 Land 75,000 75,000 Building and equipment (net) 570,000 400,000 Total assets $1,340,000 $985,000 LIABILITIES AND EQUITY Short term provisions 125,000 25,000 Accounts Payable 160,000 90,000 Accrued Liabilities 50,000 50,000 Bonds payable, due 2021 200,000 100,000 Share capital (100,000 shares) 500,000 500,000 Retained earnings 305,000 220,000 Total liabilities and equity $1,340,000 $985,000 MARIO LTD Statement of Profit or Loss for the year ended 31 December 2019 2018 $ Sales 1,000,000 940,000 Cost of sales (650,000) (635,000) Gross profit 350,000 305,000 Finance cost 20,000) (10,000) Operating expenses (115,000) (145,000) Profit before tax 215,000 150,000 Tax expense (100,000) (70,000) Profit $115,000 $80,000 Additional information: 1. Inventory at the beginning of 2018 was $350,000. 2. Receivables at the beginning of 2018 were $80,000, net of an allowance for doubtful debts account of $3,000. 3. Total assets at the beginning of 2018 were $1, 175,000. 4. No share capital transactions occurred during 2018 or 2019. 5. All sales were on account.Required (a) Please calculate the following ratios, for 2019 and 2018, using the information from Mario Ltd: . Liquidity: Current, Quick, Receivables Turnover, and Inventory Turnover. . Profitability: Profit Margin, Asset Turnover, Return on Assets, and Earnings Per Share. (b) Based on your calculations, explain the changes in liquidity and profitability of Mario Ltd from 2018 to 2019. That is, has each ratio improved/declined, and what does this movement mean? (c) How can Mario Ltd improve their Receivables Turnover and their Inventory Turnover