b) Lunga (Pty) Ltd, a retailer has the following working capital accounts. 2020 2019 2018 Year Current Assets Cash 2000 1500 1000 6000 4000 2000 Accounts receivables Inventory Total current assets 8000 4500 2000 16000 10000 5000 Current Liabilities Accounts payables Short-term liabilities 4500 3500 2000 3500 1500 500 Total current liabilities 8000 5000 2500 Marks (1) Calculate and comment on Lunga's liquidity position for the financial years 3 10 2018 - 2020, based on: i) Current ratio ii) Quick ratio iii) Cash ratio Describe and calculate other useful indicators that can be used to understand (2) 11 further the liquidity position of Lunga (Pty) Ltd. Comment on your results Using the results of parts (1) and (2) above, discuss the limitations of the (3) 4 current ratio as a measure of liquidity. List and describe other ratios, apart from liquidity ratios, that would be useful (4) for the analysis of Lunga's liquidity situation in (1) and (2) above. Clearly state 7 what you would expect these ratios to show