Q.1. A local guitar store owner has prepared the following balance sheet for the year ended on March 31, 2016 fro.cl Assets Liabilities Current Assets Cash 32,800 49,000 Accounts Receivable 300 450 Prepaid Rent 1,000 1,000 Inventory 39,800 50,450 99,500 Total Current Assets Total Liabiliti 149,950 Owner's Equity Long-term Assets Owne Equity Leasehold Improvements Retained Earnings 11,950 Accumulated Depreciation 98,000 Common Stock 10,000 Total Long-term Assets 98,000 Total Owner's Equity 21,950 Total Assets: 171.900 Total Liabilities and Owner's Equity 171.900 Comment on liquidity and solvency position of the business using tools of ratio analysis. [8]