Question: Refer to the financial statement data for Abercrombie & Fitch in Problem 4.24 in Chapter 4. Exhibit 5.16 presents risk ratios for Abercrombie & Fitch

Refer to the financial statement data for Abercrombie & Fitch in Problem 4.24 in Chapter 4. Exhibit 5.16 presents risk ratios for Abercrombie & Fitch for fiscal Year 3 and Year 4.

Required
a. Compute the amounts of these ratios for fiscal Year 5.
b. Assess the changes in the short-term liquidity risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5.
c. Assess the changes in the long-term solvency risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5.

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a Revenues to Cash Ratio 2021556 350 100 Days Revenues in Cash 36510 37 days Current Ratio 652414 16 Quick Ratio 350 26414 9 Days Accounts Receivable ... View full answer

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