Liquidity ratiosmike sanders is considering the purchase of kepler company, a firm specializing in the manufacture of office supplies. to be able to assess the financial capabilities of the company, mike has been given the company's financial statements for the 2 most recent years. kepler companycomparative balance sheetsthis year last yearassetscurrent assets: cash $ 50,000 $100,000accounts receivable, net 300,000 150,000inventory 600,000 400,000prepaid expenses 25,000 30,000total current assets $ 975,000 $680,000property and equipment, net 125,000 150,000total assets $1,100,000 $830,000liabilities and stockholders' equity current liabilities: accounts payable $ 400,000 $290,000short-term notes payable 200,000 60,000total current liabilities $ 600,000 $350,000long-term bonds payable, 12% 100,000 150,000total liabilities $ 700,000 $500,000stockholders' equity: common stock (100,000 shares) 200,000 200,000retained earnings 200,000 130,000total liabilities and stockholders' equity $1,100,000 $830,000kepler companycomparative income statementsthis year last yearsales $ 950,000 $ 900,000less: cost of goods sold (500,000) (490,000)gross margin $ 450,000 $ 410,000less: selling and administrative expenses (275,000) (260,000)operating income $ 175,000 $ 150,000less: interest expense (12,000) (18,000)income before taxes $ 163,000 $ 132,000less: income taxes (65,200) (52,800)net income $ 97,800 $ 79,200less: dividends (27,800) (19,200)net income, retained $ 70,000 $ 60,000when required, round your intermediate computations and answers to two decimal places. assume that the ending balance of last year's accounts receivable and inventory is the average for last year computations. assume 365 days per year. required: note: round all answers to two decimal places.1. compute the following ratios for each year: this year last yeara. current ratio b. quick ratio c. receivables turnover days daysd. inventory turnover days days2. conceptual connection: has the liquidity of kepler improved over the past year?