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5.14 Calculating and Interpreting Risk Ratios. Refer to the financial statement data for Abercrombie & Fitch in Problem 4.25 in Chapter 4. Exhibit 5.15 presents

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5.14 Calculating and Interpreting Risk Ratios. Refer to the financial statement data for Abercrombie \& Fitch in Problem 4.25 in Chapter 4. Exhibit 5.15 presents risk ratios for Abercrombie \& Fitch for fiscal Year 3 and Year 4. REQUIRED a. Compute these ratios for fiscal Year 5. b. Assess the changes in the short-term liquidity risk of Abercrombie \& Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5. c. Assess the changes in the long-term solvency risk of Abercrombie \& Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5. 5.14 Calculating and Interpreting Risk Ratios. Refer to the financial statement data for Abercrombie \& Fitch in Problem 4.25 in Chapter 4. Exhibit 5.15 presents risk ratios for Abercrombie \& Fitch for fiscal Year 3 and Year 4. REQUIRED a. Compute these ratios for fiscal Year 5. b. Assess the changes in the short-term liquidity risk of Abercrombie \& Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5. c. Assess the changes in the long-term solvency risk of Abercrombie \& Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5

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