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a. Calculate the firm's current and quick ratios for each year. Compare the resulting lime series for these measures of liquidity. b. Comment on the
a. Calculate the firm's current and quick ratios for each year. Compare the resulting lime series for these measures of liquidity. b. Comment on the firm's liquidity over the 2019-2022 period. c. If you were told that Bauman Company's inventory tumover for each year in the 2019-2022 period and the industry averages were as follows, would this information support or conflict with evaluation in part (b).? Why? b. Comment on the firm's llquidity over the 2019-2020 period. (Select the best answer below.) A. The pattern indlcates that Bauman Company's ability to satisfy its short-term obligations has improved over the years. B. The pattern indicates that Bauman Company's speed to convert various accounts into sales or cash has improved over the years. C. The pattern exhibits a reasonably stable trend. D. The pattern indicates a deteriorating liquidity position. c. Based on Bauman Company's inventory turnover for each year in the 2019-2022 period and the indusiry averages, does thls information support or conflict with your evaluation in part b. ? Wh (Select all the answers that apply.) A. The low inventory tumover suggests that liquidity is even worse than the declining liquidity measures indlcate. B. The low inventory turnover suggests that liquidity is not as bad as the decllning liquidity measures indlcate. C. Slow inventory turnover may indicate obsolete inventorst D. Rapid inventory turnover may indicate obsolete inventory
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