Financial Management $1$

$2024$ Assignment $1$

$3\mathrm{.}5$ The following ratios have been taken from the books of "Prime Suppliers" over the past two years of operations. For each of the above five ratios, state whether there is an improvement or decline in the ratio $(1)5)$ and motivate your response $(1\backslash$times $5).$

$\backslash$table$[[$Ratio$,2022,2023],[1.$ Current ratio,$1\mathrm{.}9,1\mathrm{.}4],[2.$ Acid test $($quick ratio$),0\mathrm{.}6,0\mathrm{.}9],[3.$ Inventory furnover,$3\mathrm{.}4$ times,$4\mathrm{.}5$ times$],[4.$ Debtors' collection period $($days$),51$ days,$56$ days$],[5.$ Creditors' payment period $($days$),65$ days,$60$ days$]]$