Ark Corporation reports the following:

	Current ratio
	2012	2013	2014
Ark Corp.	2.2	2.0	1.7
Industry Norm	2.3	1.9	1.5

Which of the following statements is true?

	a.	Ark is becoming less liquid relative to its peer group
	b.	Ark has about the same liquidity as its peer group and both are improving
	c.	Ark is improving its liquidity relative to its peer group
	d.	Ark is becoming less liquid, but is still slightly more liquid than its peers

Exlection's average collection period has been increasing over the past several years. This will have what effects on the company's current ratio, quick ratio and statement of cash flows, respectively?

	a.	Increase, increase, increase cash flow from operating activities
	b.	Increase, increase, decrease cash flow from operating activities
	c.	Decrease, decrease, increase cash flows from operating activities
	d.	Decrease, decrease, decrease cash flows from operating activities

Tramson Corp has experienced steady increases in its inventory turns over the past several years. Indicate the impact of this on the company's current ratio, quick ratio, and statement of cash flows, respectively.

	a.	Decrease, no change, increase in cash flow from operating activities
	b.	Decrease, decrease, increase in cash flow from operating activities
	c.	Increase, increase, decrease in cash flow from operating activities
	d.	Increase, no change, decrease in cash flow from operating activities

A company reports the following financial information: Inventory $218; Accounts Receivable $287; Cash $100; Prepaid expenses $410; credit sales $2,147. How long does it take to collect its credit sales?

Dana reports Inventory of $2,868,392, Cash of $1,212,943, COGS of $8,055,409, and Accounts Receivable of $2,386,741. Its benchmark peer group turns its inventory 8.3 times a year. What would Dana's new inventory level be if it experienced the same number of turns as its peer group?