QUESTION FIVE You have been hired as an analyst for Phoenix Bank and your team is working on an independent assessment of Budda Bob Food Inc. (BBF Inc.) BBF Inc. is a firm that specializes in the production of freshly imported farm produets from France. Your stant has provided you with the following data for BBC Inc and their industry 2017- Industry Average 0.35 Ratio 2017 2016 2015 Long-term debt Inventory Turnover Depreciation/ Total 025 0.014 0.45 62.65 0.40 42.42 0.35 32.25 044553.25 0.018 0.015 Assets 94 130.25 Days' sales in 113 receivables 98 0.75 0.082 Profit Margirn Total Asset Turnover 0.54 Quick Ratio Current Ratio Times Interest Earned | 09 Equity Multiplier 0.85 0,07 0.65 1.03 1.21 | 4.375 0.90 0.06 0.70 1.029 0.88 0.075 0.40 1.031 1.25 4.65 1.88 1.028 1.33 | 445 1.90 a) In the annual report to the sharcholders, the CEO of BBF Inc wrote, "2015 was a good year for the firm with respect to our ability to meet our short-term obligations We had higher liquidity largely due to an increase in highly liquid current assets cash, account receivables and short-term marketable securities)" Is the CEO correct? Explain and use only relexant information in your analysis b) 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 c) 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 (20 MARKS)