Question 7 Yellowstone Wolves Pty Ltd began operations on 1 January 2020. Below is selected information from their comparative financial statements for the year ended 31 December 2021: Cash assets Receivables Inventories 2021 2020 $28,000 $30,000 70,000 65,000 56,000 58,000 63,000 66.000 Property, plant and equipment net) Accounts Payable Short-term Loan Non-Current Liabilities Revenue Cess: Cost of Sales 22,000 25,000 20,000 24,000 63,000 60,000 240,000 250,000 130,000 140.000 110,000 110,000 43,000 48,000 67,000 62,000 Gross Profit Other Expenses Profit Required: a) Calculate the following ratios for the year ended 2021 to 1 decimal place) 1 Profit margin ratio 12marks 2 Current ratio (marks) 3. Receivables turnover ratio. 2marks) 4. Inventory turnover ratio. (2marks) 5 The debt ratio 12marks) b) After calculating the current ratio for Yellowstone Wolves Pty Ltd, the owner decided that the company was in a sound position for paying its liquid abilities. As their bookkeeper discuss the limitations of the owner's conclusion (4 marks)