'Second-Hands Ltd is a company that sells secondhand motor vehides. The owners (shareholders) of the business are interested to know how the business has performed over the past two years and have you to report on the performance of the business, in particular on the liquidity of the business. You are provided with the following information: Average for the 2019 2020 industry Current ratio Current Assets/Current liabilities 3:1 2.5:1 2.3:1 + 1.5:1 0.8:1 1:1 Quick ratio (Cash assets + Receivables)/Current liabilities Receivables turnover Net credit sales income/ Average receivables balance Average days to sell 365 / Inventory turnover 7 times 7.5 times 7 times 30 days 60 days 40 days + REQUIRED: a. State which area of business activity (profitability, liquidity or financial stability) each of the following ratios helps us to analyse: (Write your answer in the space provided) Business activity measured Ratio Return on ordinary shareholders' equity Times interest earned Average collection period Asset turnover ratio Gross profit margin Expense ratio