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Use the following information to answer the following question$($s$).$

Key Ratios for ABC, Inc. and Its Industry

ABC, Inc. $2015$ Ratios Industry Average Ratios in $2016$

Current ratio $1\mathrm{.}21\mathrm{.}4$

Acid test ratio $0\mathrm{.}890\mathrm{.}94$

Average collection period $30$ days $25$ days

Inventory turnover $18\mathrm{.}120\mathrm{.}3$

Fixed assets turnover $4\mathrm{.}14\mathrm{.}8$

Total asset turnover $2\mathrm{.}782\mathrm{.}8$

Debt ratio $50\%60\%$

Times$-$interest$-$earned $5\mathrm{.}5\%4\mathrm{.}5\%$

Net profit margin $1\mathrm{.}15\%1\mathrm{.}5\%$

Return on equity $5\mathrm{.}21\%7\mathrm{.}32\%$

ABC, Inc. Income Statement $($in thousands$)$

December $31,2016$

Sales $($all credit$)$ $$200,000$

Cost of goods sold $140,000$

Gross profit on sales $60,000$

Operating expenses $56,000$

Operating income $4,000$

Interest expense $1,000$

Earnings before tax $3,000$

Income tax $1,050$

Net income available to common stockholders $$1,950$

ABC, Inc. Balance Sheet $($in thousands$)$

December $31,2016$

Assets

Cash $$2,000$

Accounts receivable $17,800$

Inventories $8,700$

Total current assets $28,500$

Gross fixed assets $70,000$

Accumulated depreciation $26,500$

Net fixed assets $43,500$

Total assets $$72,000$

Liabilities and Equity

Accounts payable $$18,000$

Accruals $13,350$

Total current liabilities $31,350$

Long$-$term debt $8,250$

Total liabilities $39,600$

Common stock $($par value and paid in capital$)2,000$

Retained earnings $30,400$

Total stockholders' equity $32,400$

Total liabilities and equity $$72,000$

Answer the following with short explanations $($maximum $3$ sentences for each question$)$

Since $2015,$ has ABC's efficiency at using its assets improved?

In $2016,$ the improvement in ABC's return on equity occurred for which reason$($s$)?$

What happened to ABC$$s liquidity and inventory management since $2015?$

How do you think ABC is performing in working capital management compared to the industry?

From a lender$$s perspective, what is your industry consensus about ABC?

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