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?

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