1. Based on the information below, provide a liquidity analysis of Foodilicious Inc. (working capital, current ratio, quick ratio) and compute its gross profit margin before and after the necessary adjustments that will make Foodilicous comparable to Cat & Rest (remember: Cat & Rest uses FIFO to value its inventory.) Use the Excel template to show your analysis for the four years, where possible.

2. Now that you have adjusted the data, analyse the efficiency of Foodilicious Inc. by computing various turnover ratios such as inventory turnover, accounts receivable turnover, and also the days of inventory on hand, the numbers of days to sell the inventory and sales growth. What can you conclude with the results? Answer all questions in the Excel file provided.

Note: instead of using credit sales for accounts receivable turnover, use total sales.

3. Finally, using the data below for Cat&Rest, how does the firm compare to its competitor (Foodilicious) in term of liquidity and efficiency? Provide potential explanations for the differences.

Foodilicious Inc (in thousand USD) Cash and marketable securitics Accounts receivable Prepaid expenses Inventory (LIFO) Equipment Buildings Cat& Rest SA (in thousand USD) 2016 2015 29,000 40.500 2016 56,000 20,000 2014 52.000 18,000 2014 2013 22,000 27,000 Cash and marketable securities Accounts receivable 54,000 19,000 50,000 30,000 5,000 40,600 105,000 120,000 400,000 28,000 17,000 34,000 135,000 200,000 400,000 8,000 Prepaid expenses 37,000 Inventory (FIFO) 150,000 Equipment 240,000 Buildings 400.000 ntngibles 16,000 90,000 14,000 90,000 12.000 90,000 10,000 120,000 400,000 42,000 192.000 90,000 40,000 10,000 40,000 40,000 40,000 40,000 44,000 9,000 Accounts payable Short-term loan payable Long-term loan payable 46,000 Accounts payable 24,000 240,000 350,000 224,000 Short-term loan payable Long-term loan payable Common stock Retained earnings 8,000 6,000 18,000 180,000 6,000 168,000 350,000 180,000 50,000 350,000 350,000 180,000 180,000 4,400 LIFO reserve 137,000 COGS 95.900 Gross profit LIFO reserve 140,000 98,000 121,000 98,000 120,000 97,000 119,000 96,000 130,000 Gross profit Foodilic ious Inc 013 Cat&Rest SA BEFORE adjustments Current asscts Current liabilities Current ratio Working capital Inventory AFTER adjustments Adjusted inventory (FIFO) Adjusted current assets Current liabilities Adjusted current ratio Adjustred quick ratio Adjusted working capital Adjusted COGS (FIFO) Adjusted gross profit (FIFO) Current assets Current liabilities Current ratio Working capital Fo 2013 Cat&Rest SA Accounts receivable (net) Inventory turnover (adjusted) Days of inventory on hand (adjusted) Accounts receivable turnover Average collection in number of dav Accounts receivable (net) Inventory turnover Days of inventory on hand Accounts receivable turnover verage collection in number of davs Foodilicious Inc 2016 2015 2014 s growth Sales