QUESTION 6 (20 marks) The financial statements of Indigo Limited are as follows. Indigo Limited Statement of Financial Position As at December 31, 2019 and 2018 2019 Assets Current assets Cash $22,500 Accounts receivable 100,000 Inventory 57.500 Prepaid insurance 15.000 Total current assets 195,000 Property, plant and equipment, net 600.000 Total assets 5795,000 $15,000 127,500 22.500 22.500 187,500 472.500 S660.000 Liabilities Current liabilities Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Total liabilities $60,000 37.500 597,500 12.00 210,000 $75,000 60.000 $135,000 225.000 360,000 $225,000 75.000 5660.000 Shareholders' Equity Ordinary shares, 5100 par 5435.000 Retained earnings 150,000 Total shareholde equity 585.000 Total liabilities and equity S795.000 Indigo Limited Income Statement For the year ended December 31, 2019 2019 Salontact SO Les cool Gross profit 285.000 LOA penes 500 allt 203500 Les Income taxe Profit for the year Required: (Show all calculations and round ALL answers to 2 decimal places.) a. Calculate the following ratios for Indigo Limited for the year 2019, (14 marks) i) Current ratio ii) Quick ratio iii) Return on assets iv) Return on equity v) Inventory turnover rate vi) Earnings per share b. Based on the ratios calculated in (a), explain to a shareholder why the current ratio and the quick ratio are different. Do you observe any liquidity problems of Indigo Limited? Explain. (6 marks)