Statement of Financial Position as at 31 December e 20194 $ 2018 $ 50,000 80,000 100,000 42,000 50,000 87,000 ASSETS Cashe Short-term investments Receivables (net of allowance for doubtful accounts of $4,000 for 2019 and $3,000 for 2018) Inventoriese Prepaid expensese I Lande Building and equipment (net) Total assets 440,000 25,000 75,0004 570,000 $1,340,000 300,000 31,000+ 75,000 400,000 $985,000+ LIABILITIES AND EQUITY Short term provisions Accounts Payable Accrued Liabilities Bonds payable, due 2021e Share capital (100,000 shares) Retained earnings Total liabilities and equity 125,000 160,000 50,000 200,000 500,000 305,000 $1,340,000 25,000 90,000 50,000+ 100,000 500,000 220,000 $985,000 MARIO LTD Statement of Profit or Loss for the year ended 31 December Salese Cost of sales Gross profite Finance coste Operating expenses Profit before taxe Tax expensee Profit 2019 $ 1,000,000 (650,000) 350,000 (20,000) (115,000) 215,000 (100,000) $115,000 2018 $ 940,000 (635,000) 305,000 (10,000) (145,000) 150,000 (70,000) $80,000 Additional information: 1. Inventory at the beginning of 2018 was $350,000.- 2. Receivables at the beginning of 2018 were $80,000, net of an allowance for doubtful debts account of $3,000.- 3. Total assets at the beginning of 2018 were $1,175,000.- 4. No share capital transactions occurred during 2018 or 2019.4 5. All sales were on account Required (a) Please calculate the following ratios, for 2019 and 2018, using the information from Mario Ltd: Liquidity: Current, Quick, Receivables Turnover, and Inventory Turnover. Profitability: Profit Margin, Asset Turnover, Return on Assets, and Earnings Per Share. (b) Based on your calculations, explain the changes in liquidity and profitability of Mario Ltd from 2018 to 2019. That is, has each ratio improved/declined, and what does this movement mean? (c) How can Mario Ltd improve their Receivables Turnover and their Inventory Turnover