14. [Ratio calculations] You have been provided with the fol- lowing ratios and other indicators of RSEF Inc.: Asset turnover (sales asscts) Return on equity Tax rate Net income sales Accounts payable turnover Accounts receivable turnover Interest/sales Operating cycle 3.5 56.3% 20% 10% 13.5 6 4% 80 days Using the data provided above, compute RSEF's: (i) Inventory turnover (ii) Cash cycle (iii) Financial leverage (assets/equity) (iv) Return on assets (v) Interest coverage ratio 15. Liquidity analysis] The working capital accounts of Quecn Chana, a retailer, are as follows: Year 2001 2002 2003 Cash $1,000 $ 1,500 $ 2000 Accounts receivable 2.000 4,000 6.000 Inventory 2,000 4,500 8.000 Current assets $5,000 $10,000 $16.000 Accounts payable 2,000 3.500 4.500 Short-term debt 500 1,500 3,500 Current abilities $2,500 $ 5.000 $ 8,000

a. For years 2001 to 2003, calculate Queen Chana's. (i) Current ratio (ii) Quick ratio (iii) Cash ratio

b. Describe the other useful indicators of the firm's liquidity that can be calculated from the data given.