Several potential investors have been studying the affairs of Pelican Corporation to decide whether to invest in the company by purchasing unsecured notes which the company was proposing to issue. There was some speculation that the company was experiencing liquidity problems. The statements of financial position at 30 June 2018 and 2019 follow:

	PELICAN CORPORATION Statements of Financial Position as at 30 June
			2019			2018
	CURRENT ASSETS Cash at bank Marketable securities Accounts receivable (net) Inventories Other current assets	$	3264 1519 1178 2619   3094			$	2832 1775 930 1848   3605
	TOTAL CURRENT ASSETS NON-CURRENT ASSETS		11674 19960				10990 16276
	TOTAL ASSETS	$	31634			$	27266
	CURRENT LIABILITIES Accounts payable Bills payable Current maturities of long-term debt Accrued expenses Provisions	$	4880 1574 978 720   3420			$	4300 2555 450 728   2345
	TOTAL CURRENT LIABILITIES		11572				10378
	NON-CURRENT LIABILITIES Long-term debt Accrued expenses (payroll) Other non-current liabilities		5800 5425   2390				4160 4730   2055
	TOTAL NON-CURRENT LIABILITIES		13615				10945
	TOTAL LIABILITIES		25187				21323
	TOTAL EQUITY		6447				5943
	TOTAL LIABILITIES AND EQUITY	$	31634			$	27266

Required

A. Calculate appropriate liquidity and financial stability ratios for the years ended 30 June 2018 and 2019. Research reveals that typical ratios in the industry for the current and quick ratios are 1.7:1 and 1.0:1 respectively. For financial stability ratios, industry averages are 2.5:1 for the capitalisation ratio and 60% for the debt ratio.

B. Comment on the liquidity and financial stability of the company, given the information available.

C. Would you, as one of the potential purchasers of the unsecured notes, lend money to the company? Explain why or why not.