QUESTION 1 The statement of financial position of Rainbow Berhad shows the following: Rainbow Berhad Statement of Financial Position as at 31 March: 2022 RM' 000 2021 RM' 000 2020 RM' 000 Cash and cash equivalents 30,800 35,625 36,800 Accounts receivable (net) 88,500 62,500 49,200 Inventories 111,500 82,500 53,000 Property, plant and equipment (net) 287,200 264,375 233,500 Total assets 518,000 445.000 372,500 Accounts payable 128,900 75,250 49,250 Long term debt 97,500 102,500 82,500 Ordinary shares 162,500 162,500 162,500 Retained earnings 129,100 104,750 78,250 Total liabilities and shareholders' equity 518,000 445,000 372,500 Required: a. b. Based on the statement of financial position above, prepare a vertical common-size statement using total assets as the base measure for 2022, 2021 and 2020. (Calculate to 2 decimal places) (8 marks) Comment on the liquidity position of Rainbow Berhad based on the result obtained in part (a) above. (5 marks)