Use the information provided about Amqui Inc.

in Exercise E12-4 to respond to the following.

a. Calculate the following for 2013 and 2014:

i. current ratio ii. quick ratio”

ill. accounts receivable turnover ratio iv. average collection period of accounts receivable v. inventory turnover ratio vi. average number of days inventory on hand vii. accounts payable turnover ratio vill. average payment period for accounts payable ix. cash lag

b. Assume the role of an important new supplier to Amqui. Use the amounts calculated in

(a) to prepare a report assessing whether Amqui should be granted credit terms for purchases from your company. Explain the conclusions you make.