Question: Solve this problem with steps b. Morning star plc. is a manufacturer of computer accessories. The following are details for the year ended December 31,

Solve this problem with steps

b. Morning star plc. is a manufacturer of computer accessories. The following are details for the year ended December 31", 2020. Cash = 40,000 Inventories = 20,000 Payables = 20,000 Short term borrowings = 30,000 P.P.E= 120,000 Receivables = 35,000 Furniture 15,000 Long term loans 70,000 Required: Using the information above, compute the Company's below ratio and comment on each: (3 marks for calculation & 2 marks for explanation) a. Acid-test ratio b. Current ratio c. Gearing ratio (15 Marks)

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