Liquidity & Leverage problem (in the accounting ratios section)

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I am trying to do part (v), but I'm not sure I understand how to do it. I don't really understand the answer given either.

The problem(s):
http://www.tiikoni.com/tis/view/?id=39c2f43

The answer(s):
http://www.tiikoni.com/tis/view/?id=a8ee7d4

Any input would be GREATLY appreciated!

Question

Liquidity & Leverage problem (in the accounting ratios section)

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I am trying to do part (v), but I'm not sure I understand how to do it. I don't really understand the answer given either.

The problem(s):
http://www.tiikoni.com/tis/view/?id=39c2f43

The answer(s):
http://www.tiikoni.com/tis/view/?id=a8ee7d4

Any input would be GREATLY appreciated!

rina.r · Answer

Well for part V, they are asking u to comment on the business  ability to meet the obligations, based on the answers u have got for quick ratio, debts to equity ratio etc...

s3a · Answer

Sorry for being very pedantic, but could you please tell me which of the ratios is/are used (for part v), and how?