Basil Company's 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 2009-2012 period.
c. If you were told that Basil Company's inventory turnover for each year in the 2009-2012 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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Item 2009 2010 2011 2012 Total current assets US$16,950 US$21,900 USS22,500 US$27,000 Total current liabilities Inventory 9,000 6,000 12,600 6,900 12,600 6,900 17,400 7,200 Inventory turnover 2009 2010 2011 2012 Basil Company Industry average 10.6 11.2 10.811.0 6.3 6.8 7.0 6.4