Please answer required 1,2,3 Question 5Financial statement analysis and ratios 1The following ratios were provided for Laura Ltd:RATIOS201920202020 Industry AverageQuick Ratio1.2:10.4:11.1:1Current Ratio1.8:10.9:11.8:1Inventory Turnover16 times12 times18 timesAverage Collection Period of Receivables30 days60 days20 daysDebt Ratio40%60%30%Profit Margin20%10%25%Return on Assets16%8%20%Note: Company credit payment terms for customers is 30 days.RequiredGiven the above ratios, comment on the performance of Laura Ltd in relation to profitability, liquidity andfinancial stability in 2020. Include any possible problems and possible causes thereof.1. Profitability (Profit Margin and Return on Total Assets)2. Liquidity (Quick, Current, Inventory Turnover & Average Collection Period of Receivables)3. Financial Stability/Solvency (Debt Ratio)

The interpretation /comments on profitability, liquidity and financial stability is presented…

Question 5 Financial statement analysis and ratios 1 The following ratios were provided for Laura Ltd: RATIOS 2019 2020 2020 Industry Average Quick Ratio 1.2:1 0.4:1 1.1:1 Current Ratio 1.8:1 0.9:1 1.8:1 Inventory Turnover 16 times 12 times 18 times Average Collection Period of Receivables 30 days 60 days 20 days Debt Ratio 40% 60% 30%