tax cash flows. Question #5 (15%): Financial accounting In the last quarter, the financial analysis report of XYZ Company revealed that the current, quick and equity ratios were 1.9, 0.8 and 0.37 respectively, defined in table 6.8 of your textbook. In order to improve the firm's financial health based on these financial ratios, the following strategies are considered for the current quarter: Reduce inventory Pay short-term loans Increase retained earnings a) (10%) Which strategy (or strategies) is (are) effective for improving each of the three financial ratios? b) (5%) If only one strategy is considered by XYZ, which one seems to be the most effective? Assume no other information is available for analysis. Explain your answers. tax cash flows. Question #5 (15%): Financial accounting In the last quarter, the financial analysis report of XYZ Company revealed that the current, quick and equity ratios were 1.9, 0.8 and 0.37 respectively, defined in table 6.8 of your textbook. In order to improve the firm's financial health based on these financial ratios, the following strategies are considered for the current quarter: Reduce inventory Pay short-term loans Increase retained earnings a) (10%) Which strategy (or strategies) is (are) effective for improving each of the three financial ratios? b) (5%) If only one strategy is considered by XYZ, which one seems to be the most effective? Assume no other information is available for analysis. Explain your answers