1. You have been hired as an analyst for Bank WA and your team is working on an independent assessment of Duck Food Inc. (DF Inc.). DF Inc. is 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	2018	2017	2016	2018- 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. What can you say about the firm's overall management in terms of the following?

(Be as complete as possible given the above information, but do not use any irrelevant information).

1. Liquidity [2 marks]
2. Efficiency (operational efficiency) [2 marks]
3. Performance (profitability, margins) [2 marks]
4. Leverage [2 marks]

2. If current liabilities of the company was 2.75 million in 2018 and daily cash expenditure was 0.013million, using the data provided in the table, calculate the defensive interval ratio.

[2 marks]