Save Homework: Homework 2 Score: 0 of 1 pt 1 of 10 (0 complete) HW Score: 0%, 0 of 10 p Narm-Up 3-4 (similar to) Question Help Bluestone Metals, Inc., is a metal fabrication firm that manufactures prefabricated metal parts for customers in a variety of industries. The firm's motto is "If you need it, we can make it." The CEO of Bluestone recently held a board meeting during which he said that the company has the capability to build any of its products using a lean manufacturing model that allowed the company to keep inventory levels low. As an investor, you have calculated some ratios to analyze the firm's performance. Bluestone's current ratios and quick ratios for the past 6 years are shown in the table below: 2014 2015 2016 2017 2018 2019 Current ratio 1.2 1.4 1.3 1.7 1.8 2.2 Quick ratio 1.2 1.3 1.1 0.8 0.6 0.5 What do you think of the CEO's claim that the firm's manufacturing process aloows it to keep inventories low? (Hint: Is there a possible warning sign in the relationship between the two ratios?) (Select all the answers that apply.) A. Since inventory is included in the calculation of the current ratio, but not in the quick ratio, the ratios indicate that inventory is increasing and Bluestone is not operating in a lean manufacturing mode. B. The current ratio is increasing but the quick ratio is declining. C. The current ratio provides a better measure of overall liquidity only when a firm's inventory cannot be easily converted into cash. D. As with any analysis using ratios, you should investigate other financial ratios for Bluestone to further assess its financial health