Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item Total current assets Total current liabilities Inventory 2016 $16,750 8,810 5.990 2017 $21,820 12,780 6,480 2018 $22,210 13,120 7,060 2019 $26,860 17,390 7,280 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 2016-2019 period. c. If you were told that Bauman Company's inventory turnover for each year in the 2016-2019 period and the industry averages were as follows, would this information support or conflict with your evaluation in part (b)? Why? 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 2016-2019 period. c. If you were told that Bauman Company's inventory turnover for each year in the 2016-2019 period and the industry averages were as follows, would this information support or conflict with your evaluation in part (b).? Why? Item Bauman Company Industry Average 2016 6.5 11.6 2017 7.0 12.2 2018 7.2 11.8 2019 6.6 12.0 a. Calculate the firm's current and quick ratios for each year. Bauman Company's current ratio for year 2016 is (Round to two decimal places.) Bauman Company's current ratio for year 2017 is (Round to two decimal places.) Bauman Company's current ratio for year 2018 is (Round to two decimal places.) Bauman Company's current ratio for year 2019 is (Round to two decimal places.) Bauman Company's quick ratio for year 2016 is (Round to two decimal places.) Bauman Company's quick ratio for year 2017 is (Round to two decimal places.) Bauman Company's quick ratio for year 2018 is (Round to two decimal places.) Bauman Company's quick ratio for year 2019 is (Round to two decimal places.) b. Comment on the firm's liquidity over the 2016-2017 period. (Select the best answer below.) A. The pattern indicates that Bauman Company's ability to satisfy its short-term obligations has improved over the years. OB. The pattern indicates that Bauman Company's speed to convert various accounts into sales or cash has improved over the years. O C. The pattern exhibits a reasonably stable trend. D. The pattern indicates a deteriorating liquidity position. c. Based on Bauman Company's inventory turnover for each year in the 2016-2019 period and the industry averages, does this information support or conflict with your evaluation in part b.? Why? (Select all the answers that apply.) A. The low inventory turnover suggests that liquidity is even worse than the declining liquidity measures indicate. B. Rapid inventory turnover may indicate obsolete inventory. C. Slow inventory turnover may indicate obsolete inventory D. The low inventory turnover suggests that liquidity is not as bad as the declining liquidity measures indicate