The questions (a) through (g) refer to Five Star Manufacturing Company. Use the following information to solve for (a) and (b). Five Star Manufacturing Company Statement of Financial Position As of December 31, 20X4 P200,000 300,000 P500,000 Cash Marketable securities Accounts receivable Inventory Total current assets Net fixed assets Total assets P 20,000 Current Liabilities (10%) 30,000 Long-term liabilities (15%), on 150,000 Total liabilities 200,000 P 400,000 Stockholders' equity 600,000 Total Liabilities and P1,000,000 Owners' equity P500,000 P1.000.000 During 20X4, the firm's earnings before interest and taxes were 20 percent of P800,000 in sales. The income tax rate is 34 percent. Use the following information about Five Star Manufacturing Company to solve for (c) and (d). Five Star Manufacturing Company decides to examine its working capital policy. In addition to its current strategy of maintaining current assets at 50 percent of sales, Five Star is considering two other strategies based on current assets at 30 or 70 percent of next year's sales. Projected net sales and fixed assets for next year are P1,000,000 and P600,000, respectively. Five Star plans to maintain its existing capital structure of 50 percent debt and 50 percent equity. Current liabilities are to be 40 percent of projected total liabilities. Required: c. Calculate Five Star's net working capital and current ratio under each of the three strategies. d. Explain what effect these strategies would have on five Star's liquidity