A concern that an analyst would have when analyzing the liquidity of Ace Retailers is that A the firm may be taking too long to pay suppliers B the quick ratio is less than the current ratio C the company appears to sell inventory too quickly D the company has negative cash flows from operations Which of the following statements is true with regard to Ace Retailers A The average collection period and the days inventory held ratios are too high for a retailer B The company is able to collect cash faster than they are paying their suppliers, which is why their cash conversion cycle is negative C The low average collection period implies that Ace takes too long to collect on accounts receivable D The negative cash conversion cycle means that Ace Retailers is paying out cash sooner than they collect from their customers All of the following statements are true with regard to Ace Retailers except A Current assets are greater than current liabilities in both 2016 and 2015 B The firm has enough cash flow to cover current liabilities C Overall, Ace Retailers has good cash management and short term liquidity does not appear to be a concern for the firm D The decline in the cash flow from operations amount from 2015 to 2016 explains the negative cash conversion cycle Which of the following statements is true with regard to the asset turnover ratios of Ace Retailers A Total asset turnover has decreased due to less efficient use of fixed assets B Ace Retailers has increased sales relative to their investment in fixed assets or decreased their investments in fixed assets relative to sales C Fixed asset turnover has gotten worse while total asset turnover is better in 2016 compared to 2015 D Total asset turnover has declined in 2016 due to the change in revenues Use the following information for Ace Retailers to answer the question Financial ratios for the years ended May 31, 2016 2015 uidit 1 57 1 27 1 45 1 45 1 22 1 43 9 days 27 Current (times Quick (times) Average collection Days inventory held Days payable outstanding Cash conversion cycle Activit Fixed asset turnover Total asset turnover Other information Cash flow from operations (in millions of S) Revenues (in millions ofS 79 days 75 days 35) da (39) da 28 12 times 2 13 times 23 47 times 2 43 times S567 S392

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A concern that an analyst would have when analyzing the liquidity of Ace Retailers is that: A. the firm may be taking too long to

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A concern that an analyst would have when analyzing the liquidity of Ace Retailers is that:

	A.	the firm may be taking too long to pay suppliers.
	B.	the quick ratio is less than the current ratio.
	C.	the company appears to sell inventory too quickly.
	D.	the company has negative cash flows from operations.

Which of the following statements is true with regard to Ace Retailers?

A.		The average collection period and the days inventory held ratios are too high for a retailer.
B.		The company is able to collect cash faster than they are paying their suppliers, which is why their cash conversion cycle is negative.
C.		The low average collection period implies that Ace takes too long to collect on accounts receivable.
D.		The negative cash conversion cycle means that Ace Retailers is paying out cash sooner than they collect from their customers.

All of the following statements are true with regard to Ace Retailers except:

A.		Current assets are greater than current liabilities in both 2016 and 2015.
B.		The firm has enough cash flow to cover current liabilities
C.		Overall, Ace Retailers has good cash management and short term liquidity does not appear to be a concern for the firm.
D.		The decline in the cash flow from operations amount from 2015 to 2016 explains the negative cash conversion cycle.

Which of the following statements is true with regard to the asset turnover ratios of Ace Retailers?

A.		Total asset turnover has decreased due to less efficient use of fixed assets.
B.		Ace Retailers has increased sales relative to their investment in fixed assets or decreased their investments in fixed assets relative to sales.
C.		Fixed asset turnover has gotten worse while total asset turnover is better in 2016 compared to 2015.
D.		Total asset turnover has declined in 2016 due to the change in revenues.

Use the following information for Ace Retailers to answer the question Financial ratios for the years ended May 31, 2016 2015 uidit 1.57 1.27 1.45 1.45 1.22 1.43 9 days 27 Current (times Quick (times) Average collection Days inventory held Days payable outstanding Cash conversion cycle Activit Fixed asset turnover Total asset turnover Other information Cash flow from operations (in millions of S) Revenues (in millions ofS 79 days 75 days 35) da (39) da 28.12 times 2.13 times 23.47 times 2.43 times S567 S392