For questions 8-13, reference the ratios below:

	Bentley Manufacturing				Pet Food Industry
	2018	2017	2016		2018	2017	2016
Current Ratio	1.8	1.7	1.5		2.1	2.2	2.2
Accounts Rec. Turnover	11.0	12.1	14.0		11.0	12.0	10.0
# Days Sales in Receivables	33.2	30.4	26.1		33.2	30.4	36.5
Inventory Turnover	9.9	7.9	7.2		9.9	9.8	9.8
# Days Sales in Inventory	36.9	46.2	50.7		36.9	37.2	37.2

_____8. Bentleys current ratio (liquidity) is:

1. Stronger over time
2. Getting weaker over time
3. Better than its industry
4. Both a and c above
5. Both b and d above

_____9. Assume the quick ratio for Bentley is 0.4. When comparing the data to Bentleys current ratio noted above, the following conclusions may be made, except:

1. The company has most of its current assets in inventory
2. The company has the ability to meet its short-term obligations
3. The company may have difficulty paying short-term obligations if they all need to be paid immediately
4. The company may use cash management strategies to extend credit terms to suppliers so it can delay payments for a greater amount of time and this will decrease the current ratio
5. The company has most of its current assets in cash and accounts receivables

_____10. Bentleys accounts receivable turnover performance is:

1. Improving over time
2. Getting worse over time
3. Better than its industry
4. b and c above are both correct
5. a and c above are both correct

_____11. Bentleys # Days Sales in Receivables are noted in the table above. If credit terms are 30 days, which of the following interpretations is correct?

1. Collection performance improved, but credit terms are not being met
2. Collection performance improved and credit terms are being met
3. Collection performance deteriorated and credit terms are not being met
4. Collection performance deteriorated, but credit terms are being met
5. None of the above are correct

_____12. T or F: Bentley is closing the gap between its inventory turns and industry results.

_____13. T or F: Based on Bentleys Inventory information in the table (2 ratios):

Bentley is turning inventory faster over time, which means inventory is on hand for a fewer number of days. The company is managing inventory more efficiently.