The questions involve you interpreting the model output within your answers. In this case, the model output consists of;

• Current ratio (original and new)
• Acid test ratio (original and new)
• Gearing ratio (original and new)

Your discussion should focus on using the simulation to support the theoretical expectations of your discussion. For instance, you could argue that the gearing ratio would increase if the firm increased its external commitments. The increase in the gearing ratio will mean that the firm is less likely to cover its current liabilities from its liquid assets. You can test this expectation using the simulation.

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