Question 6 Financial statement analysis and ratios (5 marks) 2020 2020 Industry Average 1.1:1 0.6:1 1.8:1 The following ratios were provided for Bob Ltd: RATIOS 2019 Quick Ratio 1.2:1 Current Ratio 1.9:1 Inventory Turnover 16 times Average Collection Period of Receivables 30 days Debt Ratio 40% Profit Margin 20% Return on Assets 160 1.4:1 12 times 18 times 60 days 60% 20 days 30% 12% 25% 17504 20% Note: Company credit payment terms for customers is 30 days. Required Given the above ratios, comment on the performance of Bob Ltd in relation to profitability, liquidity and financial stability in 2020. Include any possible problems and possible causes thereof