Question 2: Total 10 marks: each ratio 2 marks (1 mark for the computation and 1 mark for the interpretation). Below comparative data for Sigma Company presented as follows (amounts in $): December 31, 2020 December 31, 2019 Cash $25,000 $30,000 Short-term investments 35,000 18,000 Receivables (net) 120,000 80,000 Inventories 95,000 65,000 Equipment 110,000 75,000 Account payable 70,000 60,000 Taxes payable 50,000 30,000 Bonds payable 80,000 90,000 During 2020, sales were $830,000 and sales return $20,000, cost of goods sold was $615,000 and net income $210,000. Instructions: Compute and interpret the following ratios at December 31, 2020: (a) Current ratio (2 marks) (b) Profit Margin (2 marks) (c) Receivables turnover in days (2 marks) (d) Inventory turnover in days (2 marks) (e) return on assets (2 marks) Solution question 2: 10 marks each ratio 2 marks (1 mark for the computation and 1 mark for the interpretation).