Liquidity managementBaumanCompany's total currentassets, total currentliabilities, and inventory for each of the past 4 yearsfollow:

Item

2012

2013

2014

2015

Total current assets

$16 comma 950

16,950

$21 comma 540

21,540

$22 comma 770

22,770

$26 comma 150

26,150

Total current liabilities

9 comma 450

9,450

12 comma 360

12,360

13 comma 360

13,360

17 comma 740

17,740

Inventory

5 comma 260

5,260

6 comma 650

6,650

7 comma 020

7,020

7 comma 320

7,320

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

b. Comment on thefirm's liquidity over the2012-2015 period.

c. If you were told that BaumanCompany's inventory turnover for each year in the2012-2015 period and the industry averages were asfollows, would this information support or conflict with your evaluation in part (b).? Why?

Item

2012

2013

2014

2015

Bauman Company

6.4

6.4

6.9

6.9

7.1

7.1

6.5

6.5

Industry Average

11.7

11.7

12.3

12.3

11.9

11.9

12.1

12.1

a. Calculate thefirm's current and quick ratios for each year.