Venture Auto Parts is a chain of 35 stores offering a full line of auto parts and supplies to consumers and independent auto repair shops. Danny’s Brake and Muffler has over 80 stores in the cities serviced by Venture. Recently, Danny Morton, the founder of Danny's Brake and Muffler was approached by Venture with an interesting offer. Venture wants to be the sole supplier of mufflers and brake parts to Danny’s. In exchange, Venture will invest in technology to monitor Danny’s inventory levels and make timely deliveries to all locations. Venture asserts that the deal will lead to lower part prices and greater inventory turnover for Danny’s.
Prior to the final phase of negotiation, Danny’s chief accountant, Sarah Wilson, was assigned the task of analyzing the confidential audited financial statements of Venture. As part of her work, Sarah calculated the following ratios and obtained Venture's Statement of Cash Flow for fiscal 2009.

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Based on this limited information, would you recommend that Danny pursue the deal with Venture?

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Fiscal 2009 Fiscal 2008 Current ratio 1.60 1.50 Quick ratio 0.65 0.85 Inventory turnover 3.82 5.25 Debt to equity 2.76 2.03 Times interest earned 1.02 2.34