Link, Inc.
	Selected financial data ($ thousands)				2017
	Income statement and related items:	2016
		$160,835	$		274,219
	Sales
	Cost of goods sold	141,829			209,628
	Net income	(91,432)			(257,981)
	Cash flow from operations	(35,831)			(12,538)
	Balance sheet items:	$236,307	$		164,952
	Cash
	Marketable securities	209,670			22,638
	Accounts receivable	12,645			21,655
	Inventory	3,971			40,556
	Total current assets	462,593			249,801
	Accounts payable	17,735			13,962
	Accrued liabilities	27,184			76,596
	Total current liabilities	44,919			90,558

1. Refer to the financial data for Link, Inc. above and show your work. The current ratio for Link at the end of 2017 is

A. 10.21

B. 2.31

C. 2.76

D. 10.30

E. None of the options is correct.

2. Refer to the financial data for Link, Inc. above. Which of the following statements best describes how the Link's short-term liquidity changed from 2016 to 2017?

A. Link's short-term liquidity has improved modestly.

B. Link's short-term liquidity has deteriorated very little but from a low initial base.

C. Link's short-term liquidity has improved considerably but from a low initial base.

D. Link's short-term liquidity has deteriorated considerably but from a high initial base.

E. None of the options is correct.

3. Refer to the financial data for Link, Inc. above. Assume a 365-day year for your calculations, and show your work. Link's collection period in days, based on sales, at the end of 2017 is

A. 24.3

B. 219.6

C. 35.7

D. 28.8

E. None of the options is correct.

4. Refer to the financial data for Link, Inc. above. Assume a 365-day year for your calculations and show your work. Link's payables period in days, based on the cost of goods sold, at the end of 2017 is

A. 5.2

B. 24.3

C. 28.8

D. 35.7

E. None of the options is correct.