You are provided with the following information about Trading Dot.Com Ltd:

		$
Balance Sheet	Inventory	1,950
	Current Liabilities	3,720
	Net Working Capital	1,350
	Total Assets	17.5 million
	Total Debt	7.1 million
Income Statement	Sales	35 million
	Profit Margin	10%

Calculate Trading Dot.Com Ltds:

Current Ratio

Quick Ratio

Net Income

Return on Asset

Return on Equity

Debt to Equity Ratio

Total Debt Ratio

If you were asked about the short-term solvency of Trading Dot.Com Ltd. Which of the above ratio(s) would you provide?

In recent years Trading Dot.Com Ltd has greatly increased its Current Ratio. However, its Quick Ratio has fallen. What has happened. Has the liquidity of the company improved? Explain the dynamics.