Selected Petrillo Ltd. 2017 and 2016 figures and 2016 ratios are presented as follows: Net credit sales Profit after tax Profit available to ordinary shareholders Income tax Interest expense Earnings before income tax and interest expensel Cost of sales Gross profit Operating expenses PETRILLO 2017 US$M) 66 415 6 787 6 740 2 104 9111 9802 31 2431 35 172 25 467 PETRILLO 2016 US$M 65 492 6 214 6 1781 2 090 899 9 2031 31 2911 34 201 25 278 Current assets Cash + Receivables + Marketable securities Net receivables Inventory Total assets 22 203 16 632 6 954 3 409 77 478 18 720 13 660 7041 3581 74 638 Current liabilities Total liabilities 17 839 53 089 17 089 5 2 239 Net cash flows from operating activities Capital expenditures Total equity 9 688 2 7952 24 389 8 4791 714 22 399 Weighted average no. of ordinary shares Share price Dividends Earnings per share 15411 $82.94 3 4341 $4.37 1 557 $68.43 3 305 $3.97 Required: . Calculate the following. Show workings (14 marks) Liquidity ratio 1. Current ratio 2. Inventory turnover Solvency ratio 3. Debt to total asset 4. Times interest earned Profitability ratio 5. Return on ordinary shareholders' equity 6. Return on assets 7. Profit margin 2017 2016 [Answer here) RATIOS Liquidity 1. Current ratio 2. Inventory turnover 1.10.1 8.45 times Solvency 0.70:1 10.24 times 3. Debt to total assets 4. Times interest eamed Profitability 5. Return on ordinary shareholders equity 16. Return on assets 7. Profit margin 28.50% 8.40% (Show workings] Liquidity ratio 1. Current ratio = 2. Inventory turnover = Solvency ratio 3. Debt to total assets = 4. Times interest earned = Profitability ratio 5. Return on ordinary shareholders' equity = 6. Return on assets = 7. Profit margin = . b) Evaluate the liquidity, solvency and profitability of Petrillo Ltd by commenting on the changes of each ratio between 2016 and 2017. (6 marks)