Q4. You have been hired as an analyst for Zerbank, and your team is working on an independent assessment of ABC Inc. ABC Inc. is specialized in the production of freshly imported farm products from France. Your assistant has provided you with the following data for ABC Inc. and its industry.

Q4. You have been hired as an analyst for Zerbank, and your team is working on an independent assessment of ABC Inc. ABC Inc. is specialized in the production of freshly imported farm products from France. Your assistant has provided you with the following data for ABC Inc. and its industry. 2016- Ratios 2014 2015 2016 Industry Average Inventory Turnover 62.65 42.42 32.25 53.25 Days' sales in receivables 113 98 94 130.25 Total Asset Turnover 0.54 0.65 0.70 0.40 Quick Ratio 1.028 1.03 1.029 1.031 Times Interest Earned 0.9 4.375 4.45 4.65 Equity Multiplier 1.75 1.85 1.90 1.88 In the annual report to the shareholders, the CEO of Flipper Inc. wrote, "2014 was a good year for the firm concerning our ability to meet our short-term obligations. We had higher liquidity primarily due to an increase in highly liquid current assets. Is the CEO correct? Explain and use relevant information in your analysis. a. What can you say about the firm's asset management? Be as complete as possible given the above information, but do not use any irrelevant information. b. You are asked to provide the shareholders with an assessment of the firm's solvency and leverage. Be as complete as possible given the above information, but do not use any irrelevant information