Homework: Module 3B: P3-17 (Unlimited Chances) Score: 0 of 8 pts P3-17 (similar to) 1of 1 (0 complete) HW Score: s Quest Interpreting liquidity and activity ratios The new owners of Bluegrass Natural Foods, Inc., have hired you to help them diagnose and cure problems that the company has had in maintaining ad As a first step, you perform a liquidity analysis. You then do an analysis of the company's short-term activity ratios. Your calculations and appropriate industry norms are listed here BEB a. What recommendations relative to the amount and the handling of inventory could you make to the new owners? b. What recommendations relative to the amount and the handling of accounts receivable could you make to the new owners? c. What recommendations relative to the amount and the handling of accounts payable could you make to the new owners? d. What results, overall, would you hope your recommendations would achieve? Why might your recommendations not be effective? a. What recommendations relative to the amount and the handling of inventory could you make to the new owners? (Select all the answers that apply.) A Bluegrass's excess inventory relative to the industry could be due to slow sales relative to production or possibly from carrying obsolete inventory. B. Bluegrass appears to be holding excess inventory relative to the industry C. Bluegrass appears to be turning over its inventory faster than the industry, on average. D Bluegrass's excess inventory relative to the industry s supported by the low inventory turnover and the low quick ratio, even tough the current ratio s above the industry average Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Bluegrass Industry norm Ratio Current ratio Quick ratio Inventory turnover Average collection period Average payment period 4.5 2.1 5.9 75 days 30 days 4.1 3.2 10.3 54 days 39 days Print Done Click to select your answer(s) and then click Check