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Ipswitch Inc. has the following balance sheet and income statement data. ,,( X $1000),Assets ,Cash 14,000,Accounts Receivable 70,000,Inventories 210,000,Total current Assets 294,000,Net Fixed Assets 211,556 ,Total Assets 505,556,,Liabilities and Equity,Accounts Payable 42,000,Accruals 28,000,Notes payable 85,556,Total Current Liabilities 155,556,Long Term Debt 70,000,Common Equity 280,000,Total Liabilities & Equity 505,556,,Income Data:,Total Sales $ 280,000,Net Income $ 21,000,,The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the “benchmark” ratio of 2.5. ,,Show all calculations in logical form and explanations readable form.,a. Is this company solvent?,b. Is it liquid?,c. Is it satisfactorily profitable? Explain your reasoning.,d. Is the CFO’s idea a reasonable strategy? Why or why not?,,,