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Reference the ratios below:

	Wiltsire Car Mfg. Company				Auto Industry
	Year 3	Year 2	Year 1		Year 3	Year 2	Year 1
Current Ratio	1.5	1.3	1.2		2.1	2.2	2.2
Debt Ratio	0.5	0.4	0.3		0.2	0.2	0.2
Debt-Equity Ratio	0.9	0.7	0.6		0.4	0.4	0.5
Times Interest Earned	6.1	5.9	3.2		8.5	7.9	7.4
Inventory Turnover	8.2	7.4	7.2		9.0	7.5	6.5

Fast Cars inventory turnover is:

	a.	Unchanged over time
	b.	Improving over time
	c.	Getting worse over time
	d.	Not determinable based on information provided
	e.	Better than its industry

Becker Co., presents the following data, in millions, for Year 3.

Ending Receivables, net ( allowances $23 million)	$ 1,015
Net Sales	42,879
Cost of Goods Sold	32,918

The days' sales in receivables (average collection period) is

	a.	8.8
	b.	0.11
	c.	8.6
	d.	9.4
	e.	11.5

1. Reference the ratios below:

   	Wiltshire Car Mfg. Company				Auto Industry
   	Year 3	Year 2	Year 1		Year 3	Year 2	Year 1
   Current Ratio	1.5	1.3	1.2		2.1	2.2	2.0
   Debt Ratio	0.5	0.4	0.3		0.2	0.2	0.2
   Debt-Equity Ratio	0.9	0.7	0.6		0.4	0.4	0.5
   Times Interest Earned	6.1	5.9	3.2		8.5	7.9	7.4
   Inventory Turnover	8.2	7.9	7.2		9.0	7.5	6.5

   Wiltshire Car Mfg. Company liquidity situation is:

   	a.	Getting stronger over time
   	b.	Getting weaker over time
   	c.	Not determinable based on information provided
   	d.	Unchanged over time
   	e.	Stronger than its industry

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