Refer to the financial statement data for Abercrombie & Fitch in Problem 4.25 in Chapter 4. Exhibit 5.15 presents risk ratios for Abercrombie & Fitch for fiscal Year 3 and Year 4.

a. Compute these ratios for fiscal Year 5.

b. Assess the changes in the short-term liquidity risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5.

c. Assess the changes in the long-term solvency risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5.

CurrentratioQuickratioOperatingcashflowtocurrentliabilitiesratioDaysaccountsreceivableoutstandingDaysinventoryheldDaysaccountspayableoutstandingNetdaysofworkingcapitalfinancingneededLiabilitiestoassetsratioLiabilitiestoshareholdersequityratioLong-termdebttolong-termcapitalratioLong-termdebttoshareholdersequityratioOperatingcashflowtototalliabilitiesratioInterestcoverageratioYear52.41.71.17727226480.5911.4430.4540.8310.2987.2Year42.31.61.58746122430.5921.4480.4610.8550.3807.6Year3 CurrentratioQuickratioOperatingcashflowtocurrentliabilitiesratioDaysaccountsreceivableoutstandingDaysinventoryheldDaysaccountspayableoutstandingNetdaysofworkingcapitalfinancingneededLiabilitiestoassetsratioLiabilitiestoshareholdersequityratioLong-termdebttolong-termcapitalratioLong-termdebttoshareholdersequityratioOperatingcashflowtototalliabilitiesratioInterestcoverageratioYear52.41.71.17727226480.5911.4430.4540.8310.2987.2Year42.31.61.58746122430.5921.4480.4610.8550.3807.6Year3