Question 1 (Total 40 marks) (a) (24 marks) Use the following financial statements of Aberdeen Co. to complete these requirements: 1. Compute the following ratios as of December 31,2021 , or for the year ended December 31,2021 : Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Debt ratio Interest coverage ratio (b) (i) Earnings per share for both 2020 and 2021. (8 marks) (ii) Give brief comment on the change of Earnings per share how do you expect this change would affect the share price. (8 marks) ABERDEEN COMPANY Comparative Balance Sheets December 31,2021 and 2020 Liabilities Current liabilities \begin{tabular}{lrr} Accounts payable & $164,000 & $190,000 \\ Short-term notes & 75,000 & 90,000 \\ Taxes payable & 26,000 & 12,000 \\ \hline Total current liabilities & 265,000 & 292,000 \end{tabular} Long-term liabilities Notes payable (secured by \begin{tabular}{lll} mortgage on buildings) & 400,000 & 420,000 \\ \hline bilities & 665,000 & 712,000 \end{tabular} Stockholders' Equity \begin{tabular}{lrrr} Common stock, $5 par value & 475,000 & 475,000 \\ Retained earnings & 544,000 & 491,000 \\ \hline Total stockholders' equity & 1,019,000 & 966,000 \\ Total liabilities equity & $1,684,000 & $1,678,000 \end{tabular}