Question 3 (18 marks) Part A (14 marks) The following data are from the Balance Sheet of Solar Power. 2019 Current assets $2 830 Total assets 86 500 Current liabilities 5 000 Non-current liabilities 76 550 2018 $4 500 97 200 3 600 46 000 Required: 1) Calculate the current ratio for 2019 and 2018. Show your workings and round your answers to two decimal places. (2 marks) 2) Calculate the debt to total assets ratio for 2019 and 2018. Show your workings and round your answers to two decimal places. (3 marks) 3) Interpret the meaning of the current ratio calculated in part 1) for 2019. Comparing the ratio to 2018, what would you say in regard to the liquidity of the business? (3 marks) 4) Solar Power plans to borrow from financial institutions to improve its liquidity. If you were a manager of a bank, what other financial data would you consider for making the decision? Explain your answer. (4 marks) 5) If the accounting methods adopted by Solar Power to recognise assets are different from 2018 to 2019. How would this affect your evaluation? Which of the qualitative characteristics is relevant to this case? Explain your answer. (2 marks)