Using suitable ratios, analyse the information provided and recommend what actions should be taken. The following financial information relates to HGR Co Statement of financial position at the current date (extracts) $000 $000 $000 48,965 Non-current assets Current assets Inventory Accounts receivable 8,160 8.775 16,935 65,900 Total assets Current liabilities Overdraft Accounts payable 3,800 10.200 14,000 Required: Calculate: Current ratio and Quick Ratio and make comments. Vickery and Veingyis is a business partnership set up by Robin Vickery and Kaspar Vainovec some years ago. The partners are now considering the installation of a new computer system using specially written software to streamline the business's warehousing operations. The initial outlay on the project will be substantial. A feasibility study has already cost 20 000. Kaspar estimates that payments to the software house will be 100 000 immediately, with a further 75 000 in a year's time. New equipment and installation and testing costs will amount to 148 000 during the first year (it should be assumed for appraisal purposes that these costs arise at time 1). The plan is that the new system should go live in one year's time. After that point the business should start to reap considerable benefits from what will be, essentially, a paperless ordering and shipment tracking system. The partners plan to reduce their staffing levels considerably during the first two years during which the system is in operation and there will be other cost saving benefits including a reduction in office storage space, stationery, postage and other costs. Because of the increased efficiency of the operation, the partners also expect substantial increases in sales. The net cash inflows forecast from the installation of the new systems are as follows: Time 2 000 184 3 159 4 108 5 96 6 40