Question No-2 5 a) The new owners of Rahima Foods, Inc., have hired you to help them diagnose and cure problems that the company has had in maintaining adequate liquidity. As a first step, you perform a liquidity analysis. You then do an analysis of the company's short-term activity ratios. You are also required to analyse other parameter if any. All the calculations and appropriate industry norms are listed below. Industry norm 4.0 3.1 10.4 Ratio Current ratio Quick ratio Inventory turnover Average collection period Average payment period Cash conversion cycle Fixed asset turnover PIE EPS Rahima Foods, Inc. 4.5 2.0 6.0 73 days 31 days ? 2.5 150.45 0.015 52 days 40 days ? 4.2 10.12 4.45