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Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item 2012 2013 2014 2015

Liquidity managementBauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow:

Item

2012

2013

2014

2015

Total current assets

$17,370

$21,850

$22,930

$26,290

Total current liabilities

8,880

12,140

13,250

17,480

Inventory

5,770

6,870

7,690

7,110

a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures of liquidity.

b. Comment on the firm's liquidity over the 2012-2015 period.

c. If you were told that Bauman Company's inventory turnover for each year in the 2012-2015 period and the industry averages were as follows, would this information support or conflict with your evaluation in part

(b).Why?

Item

2012

2013

2014

2015

Bauman Company

6.3

6.8

7.0

6.4

Industry Average

11.3

11.9

11.5

11.7

ROUND ALL ANSWERS TWO DECIMAL PLACES

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