screenshot of question

You have been provided with the following information for a small private company, Formosa Pty Ltd, whose competitors are predominately large public companies. 2017 2018 Earl Net prot margin 8.2% 7.5% 8. Return on equity 13.1% 12.3% Current ratio 1.8 2.1 Quick ratio 1.2 1.1 Receivables turnover 12.2 12.6 Inventory turnover 4.7 4.5 D REQUIRED: (a) Comment on the trend of each of the six ratios for Formosa Pty Ltd in relation to the company's protability and liquidity. For each ratio, describe what the ratio measures. (word limit 500). (b) Explain the difference between liquidity and solvency when analyzing a company's nancial statements. (word limit 150)