09 You have been tred as an analyst for Motion Bank and your team is working on an independent sesent of Dolly Duck Food Inc (DOF Inc) OF Inc is a firm that is in the production of freshly imported for products from France Yoursant has provided you with the following data for Flipper Inc and the industry 1997 0.35 32.25 0.018 94 Ratio 1999 Long-term debit 0.45 Inventory Turnover 62.65 Depreciation/Total Assets 0.25 Days' sales in receivables 113 Debt to Equity 0.75 Profit Margin 0.082 Total Asset Turnover 0.54 Quick Ratio 1.028 Current Ratio 1.33 Times Interest Earned 09 Equity Multiplier 1.75 1998 0.40 42.42 0.014 98 0.85 0.07 0.65 1.03 1.21 4.375 1 85 0 90 0.06 0.70 1.029 1.15 4.45 1.90 1999- Industry Average 0.35 53.25 0.015 130.25 0.88 0.075 0.40 1.031 1.25 4.65 1.88 (a) in the annual report to the shareholders, the CEO of Flipper Inc wrote, *1997 was a good year for the firm with respect to our ability to meet our short-term obligations We had higher liquidity targely due to an increase in highly liquid current assets (cash, account receivables and short-term markotablo securities) "Is the CEO correct? Explain and use only relevant information in your analysis. (6) (b) What can you say about the firm's asset managemont? Be as complete as possible given the above information, but do not use any irrelevant information (4) (c) You are asked to provide the shareholders with an assessment of the firm's solvency and loverage. Bo as complete as possible given the above information, but do not use any irrelevant information (4)