For questions 8-13, reference the ratios below:

	SunBeam Manufacturing				Electronics Industry
	2019	2018	2017		2019	2018	2017
Current Ratio	1.8	1.7	1.5		1.5	1.2	1.0
Accounts Rec. Turnover	13.0	12.1	10.0		11.0	12.0	10.0
# Days Sales in Receivables	28.1	30.2	36.5		33.2	30.4	36.5
Inventory Turnover	9.9	8.9	7.2		9.9	9.8	9.8
# Days Sales in Inventory	36.9	41.0	50.7		36.9	37.2	37.2

_____8. SunBeams current ratio (liquidity) is:

1. Stronger over time
2. Getting weaker over time
3. Higher than its industry
4. Both a and c above
5. Both b and d above

_____9. Assume the quick ratio for SunBeam is 0.5. When comparing the data to SunBeams current ratio noted above, the following conclusions may be made, except:

1. The company has most of its current assets in inventory
2. The company has the ability to meet its short-term obligations
3. The company may have difficulty paying short-term obligations if they all need to be paid immediately
4. The company may use cash management strategies to extend credit terms with suppliers so it can delay payments for a greater amount of time and this may decrease the current ratio
5. The company has most of its current assets in cash and accounts receivables

_____10. SunBeams accounts receivable turnover performance is:

1. Improving over time
2. Getting worse over time
3. Better than its industry
4. b and c above are both correct
5. a and c above are both correct

_____11. SunBeams # Days Sales in Receivables are noted in the table above. If credit terms are 30 days, which of the following interpretations is correct?

1. Collection performance improved, but credit terms are not being met
2. Collection performance improved and credit terms are being met
3. Collection performance deteriorated and credit terms are not being met
4. Collection performance deteriorated, but credit terms are being met
5. None of the above are correct

_____12. T or F: SunBeams is closing the gap between its inventory turns and industry results.

_____13. T or F: Based on SunBeams Inventory information in the table (2 ratios):

SunBeam is turning inventory faster over time, which means inventory is on hand for a fewer number of days. The company is managing inventory more efficiently.