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You have been hired as an analyst for Ithmar Bank and your team is working on an independent assessment of Ahmed Foods WLL. Ahmed Foods WLL is a firm that specializes in the production of freshly imported farm products from France. Your assistant has provided you with the following data for Ahmed Foods WLL and their industry.

Ratio	2017	2016	2015	2017 Industry Average
Long-term debt	0.45	0.40	0.35	0.35
Inventory Turnover	62.65	42.42	32.25	53.25
Days sales in receivables	113	98	94	130.25
Debt to Equity	0.75	0.85	0.90	0.88
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
Equity Multiplier	1.75	1.85	1.90	1.88

a. In the annual report to the shareholders, the CEO of Ahmed Foods WLL wrote, 2017 was a good year for the firm with respect to our ability to meet our short-term obligations. We had higher liquidity largely due to an increase in highly liquid current assets (cash, account receivables and short-term marketable securities). Is the CEO correct? Explain and use only relevant information in your analysis. (Marking Scheme: Computation: 6 Marks, Interpretation with Justification: 4 Marks, Total: 10 Marks)

b. What can you say about the firm's asset management with regard to turnover? Be as complete as possible given the above information, but do not use any irrelevant information. (Marking Scheme: Computation: 6 Marks, Interpretation with Justification: 4 Marks, Total: 10 Marks)

c. You are asked to provide the shareholders with an assessment of the firm's solvency and leverage. Be as complete as possible given the above information, but do not use any irrelevant information.(Marking Scheme: Computation: 6 Marks, Interpretation with Justification: 4 Marks, Total: 10 Marks)

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