The following table contains information from the most recent financial statements of Sherlock Ltd., a retailer. All accounts have their norma Abalance. Cash $ 200,000 Accounts Receivable 380,000 Inventory 475,000 1,200,000 Equipment Accumulated Depreciation Equipment (475,000) Accounts Payable 300,000 Wages Payable 65,000 Loan Payable (Due in 3 years) 950,000 Common Shares 150,000 Retained Earnings 315,000 Gross Profit 190,000 Net Income 87.000 170 23 ... A g The inventory turnover ratio for Sherlock for the year was 7.5 times. Moriarty Ltd., Sherlock's main competitor, had the following ratios for the year: Current ratio 2.0 Inventory turnover ratio 6.1 times a. Using the above information, calculate Sherlock's current ratio. Compare it to Moriarty's and briefly explain which company is best able to meet its current liabilities as they come due. Note: Round calculations to one decimal place (i.e., 9.2) (2 marks - 5 minutes) b. Using the inventory turnover ratios provided above, explain which company is selling their inventory at a faster rate (or more quickly). Provide one reason why inventory turnover is important to businesses. (2 marks - 5 minutes) Paragraph BIU