The management of Hencky Corporation is developing a loan proposal to present to a local investor. The company is looking for a $1-million loan to finance the research and development costs of producing a revolutionary new wearable computer. Most of the loan proceeds will be spent on intangible costs, such as research salaries, and this will therefore be a very risky investment. Because of the risk associated with the project, the investor is requiring some assurance that the company is currently solvent and operating as a going concern. As the accountant for Hencky Corporation, you have used the most recent financial statements to calculate the following ratios:

			2020			2019
	Current ratio		1.8:1			1.7:1
	Quick ratio		1.10:1			1.08:1
	Accounts receivable turnover		10 times			11 times
	Inventory turnover		6 times			5 times
	Debt to equity ratio		25.2%			35.8%

Provide an explanation of how each of the above ratios should be interpreted and what they specifically tell you about Henckys solvency and ability to continue as a going concern.