Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
15th Edition
ISBN: 9780134476315
Author: Chad J. Zutter, Scott B. Smart
Publisher: PEARSON
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Chapter 3, Problem 3.11P
Learning Goal 3
P3-11 Liquidity management Bauman Company’ total current assets, total current liabilities, and inventory for each of the past 4 years follow:
- a. Calculate the firm’s current and quick ratios for each year. Compare the resulting time series for these measures of liquidity.
- b. Comment on the firm's liquidity over the 2016- 2017 period.
- c. If you were told that Bauman Company’s inventory turnover for each year in the 2016-2019 period and the industry averages were as follows, would this information support or conflict with your evaluation in part b? Why?
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Chapter 3 Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
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