MONARCH INSTITUTE The partners have all replied to your email approving the financial report. They have also asked to complete additional analysis of the financial data. The business would like to gain a better idea of which areas of they are performing well and what we can do to continue their growth. They have asked you to prepare a report on the liquidity, profitability and activity levels in the business as well as your professional recommendations on some pathways to improve our long-term success. 8. Use the following template to prepare an email to the partners. Your email should be based on the financial reports you prepared above and include the following: O Current ratio Quick ratio 0 Gross profit ratio 0 Net profit rate O Inventory turnover (assume when calculating average inventory, the Opening Inventory = $0) O Days inventory is held O Make three suggested changes the partners could make that would help business growth. For each, describe how it will benefit the business in the longer term. Explain the advantages and disadvantages of the ratio analysis you have completed 0 Comment on how the liquidity, profitability and activity of the business compares with the following industry averages: Ratio name Industry Averages Current ratio Quick ratio Inventory turnover rate Average days inventory is held Gross profit rate Net profit rate 2:1 1.38:1 5 times 61 days 34% 12%