The following information has been extracted from the financial statements of Lunar Flights Ltd.

Required

(a) Calculate the following for 2024 and 2023:
(i) current ratio (ii) quick ratio.

(b) Comment on the liquidity and trend in liquidity, given that the industry average for these ratios are current 2.3:1 and quick 1.3:1.

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2024 2023 Cash at bank $ 195 000 $ 185.000 Marketable securities 350 000 320 000 Accounts receivable 350 000 385 000 Inventory 940 000 960 000 Prepaid expenses 31 000 78 000 Plant and equipment 1 850 000 1 600 000 Accounts payable 779 000 823 500 Bills payable 53 000 49 500 Accrued expenses 8 000 5500