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Transcription of this question: 2.PapelPapel manufactures and sells paper bags. It pays cash for 80% of its raw materials but,to remain competitive, it must sell on credit to all customers. Many debtors are not payingon time and creditors (suppliers) are increasing. The board of directors is concerned aboutPapers liquidity position.The finance manager has provided information from Papers accounts.Table 1: Selected information from Papers accounts at 31 October 2018Accumulated retained profitCashCost of goods soldCreditorsDebtorsExpensesLong-term liabilities (debt)Net fixed assetsSales revenueShare capitalStockooos $14322012220605265(a)(b)(c)Define the term debtors.Using information from Table 1:(i) construct a fully labelled balance sheet for Papel for the end of October 2018;(ii) calculate the current ratio for Papel for the end of October 2018.Explain one possible strategy, other than elimination of credit sales, for Papel toimprove its liquidity position.