Please show your working and explain the reasoning for your answer.

Gygax RPG Ltd Statement of Financial Performance for the year ended June 30, 2020 Gygax RPG Ltd Statement of Financial Position as at June 30, 2020 ($000s) Owners' Equity Shareholders' funds NPAT Total owners' equity ($000s) 2720 $ 140 ($000s) $ 3,756 $ 2,453 $ $ 613 $ 60 $ 140 490 Sales Cost of goods sold Depreciation expense Interest expense Tax expense NPAT 2860 Assets Cash Accounts receivable Inventory Trademarks and brands Plant and equipment Total assets 106 192 368 100 5354 6120 Liabilities Accounts payable Overdraft (short term) Long term debt Total liabilities 144 1039 2077 3260 2860 Explain the concept of the current ratio. What is the difference between the current ratio and the quick ratio, and why does it matter? Calculate the current ratio for Gygax, and comment on your answer. A B I TA III S to US X2 x2 = = = E E = 1 G O