Liquidity ratios

Task

Write a program that can be used to determine the liquidity of a company, by means of the “current ratio” and “acid test ratio”.

• Current ratio is calculated as follows:

\[ \frac{\text{Current assests} - \text{Accounts receivable over more than 1 year}}{\text{debts within 1 year} + \text{Liabilities}} \]

• Acid test ratio is calculated as follows:

\[ \frac{\text{Current assets} - \text{Accounts receivable over more than 1 year} - \text{inventories and orders in progress}}{\text{debts within 1 year} } \]

Specifications

• Write a function calculate_current_ratio(...) with arguments, respectively, for assets, long-term receivables, short-term debts, and liabilities. This function calculates the “current ratio” and returns a string in the form De current ratio van de onderneming bedraagt: VALUE.
• Write a function calculate_acid_test_ratio(...) with arguments, respectively, for assets, long-term receivables, short-term debts, and inventories and work in progress. This function calculates the “acid test ratio” and returns a string in the form De acid test ratio van de onderneming bedraagt: VALUE.
• The ratios should be rounded to two decimal places.
• Only the function definitions should be given. There is no need to call the function.

Tips and Remarks

• You can assume that all arguments are floats.
• Rounding to two decimal places can be done using round(number, 2).