Telstra has these account balances as at December 31, 2019:

 Loan payable 5 years  $7.800

 Accounts Payable  $7.700

 Prepaid rent  $2.300

 Accounts receivable  $2.700

 Salary payable  $3.000

 Cash  $3.500

  Retained earnings  $2,000

 Inventory  $5.500

   Capital  $15,000

 Equipment  $15.000

   

Required:

1-Calculate Telstra's current ratio and debt ratio. 

2-Compute the acid test ratio and comment on Telstra liquidity position? 

3-Explain the meaning of these ratios.