Ratio analysis Cygnet Handmade and Franklin Homewares are two small organisations operating in the retail industry. The table below provides selected information from their Income Statements and Balance Sheets for the last two financial years. Your task is to use ratio analysis to make a more detailed comparison of their relative financial position and performance. Cygnet Handmade Franklin Homewares 2019 2020 2019 2020 Current assets $111 500 $101 060 $167 900 $160 700 Non-current assets $251 000 $245 000 $299 000 $287 000 Current liabilities $59 600 $60 400 $23 500 $26 040 Non-current liabilities $96 800 $90 600 $143 000 $148 000 Owner's Equity $206 100 $195 060 $300 400 $273 660 Additional information Inventory (included in Current assets) $41 000 $50 000 $75 000 $77 000 Profit (included in Owner's equity $71 000 $71 000 $68 000 $71 000 Financial Information for 2018 Cygnet Handmade Franklin Homewares Total Owner's equity $201 000 $251 000 Total Assets $301 500 $411 000 Required: a. Use two ratios to calculate each organisation's liquidity for each year (2019 and 2020). b. Use two ratios to calculate each organisation's profitability for each year (2019 and 2020). c. Using your calculations from (a) and (b) compare the two organisations with reference to liquidity and profitability. Your answer should also include an explanation of the four ratios used in your calculations