You have been hired as an analyst for Bank WA and your team is working on an independent assessment of a firm that specializes in the production of freshly imported farm products from New Zealand. Your assistant has provided you with the following data about the company and its industry.

Ratio	2019	2018	2017	2019- Industry Average
Long-term debt	0.45	0.40	0.35	0.35
Inventory Turnover	62.65	42.42	32.25	53.25
Depreciation/Total Assets	0.25	0.014	0.018	0.015
Days sales in receivables	113	98	94	130.25
Debt to Equity	0.75	0.85	0.90	0.88
Profit Margin	0.082	0.07	0.06	0.12
Total Asset Turnover	0.54	0.65	0.70	0.40
Quick Ratio	1.028	1.03	1.029	1.031
Current Ratio	1.33	1.21	1.15	1.25
Interest coverage Ratio	0.9	4.375	4.45	4.65

1. In the annual report to the shareholders, the CEO of the company wrote, 2019 was a good year for the firm with respect to our ability to meet our short-term obligations. We had higher liquidity largely due to an increase in highly liquid current assets (cash, account receivables and short-term marketable securities). Is the CEO correct? Explain and use only relevant information in your analysis.

[4 marks]

2. What can you say about the firm's asset management? Be as complete as possible given the above information, but do not use any irrelevant information.

[4 marks]

3. If current liabilities of the company was 2.5 million in 2019 and daily cash expenditure was 0.011million, using the data provided in the table, calculate the defensive interval ratio.

[2 marks]