Usc the following information for Acc Retailers to answer the question 2015 Financial ratios for the years ended May 31, 2016 Liquidit Current 1.22 1.43 Cash flow liquidity (times Days inventory held 75 days ys payable Cash conversion cycle Activit 79 days 35) da 39) days 28.12 timcs 23.47 times xcd assct turrDover Total assct turnover Other information Cash flow from Revenues (in millions of S 13 times 2.43 times tions (in millions of S) S567 S392 A concern that an analyst would have when analyzing the liquidity of Ace Retailers is that: the company appears to sell inventory too quickly the quick ratio is less than the current ratio. the company has negative cash flows from operations. the firm may be taking too long to pay suppliers. QUESTION 15 Use the following information for Ace Retailers to answer the question Financial ratios for the y rs ended May 31, | 2016 Current (times) Cash flow liquidity (times) 2015 1.45 1.22 1.43 9 days Days payablc o 19 days 75 days Activ Fixed asset tunover Toial asset turnover Other information Cash flow from operations (in millions of 8.12 times 47 time 2.13 ties 2.43 times 5567 392 Which of the following statements is true with regard to Ace Retailers? The negative cash conversion cycle means that Ace Retailers is paying out cash sooner than they collect from their customers. The low average collection period implies that Ace takes too long to collect on accounts receivable The company is able to collect cash faster than they are paying their suppliers, which is why their cash conversion cycle is negative The average collection period and the days inventory held ratios are too high for a retailer