You have been provided with the following information about Everell Inc. (Everell).

Required:
a. Calculate the accounts receivable, inventory, and accounts payable turnover ratios for 2016 through 2018.
b. Calculate the average collection period of accounts receivable, average number of days inventory on hand, and average payment period for accounts payable for 2016 through 2018.
c. Determine Everell€™s cash lag for 2016 through 2018.
d. Interpret the results you obtained in parts (a) through (c). What do these results tell you about Everell€™s liquidity over the last three years?
e. What are some possible explanations for the results?
f. Suppose you are a banker that Everell€™s management has approached about an expanded line of credit. How would the results you obtained in parts (a) through (c).affect your decision?Explain.

2015 2016 2017 2018 Accounts receivable Inventory Accounts payable Revenue Cost of sales S 300,000 315,000 S 330,750347,288 231,526 173,644 210,000 157,500 2,100,000 1,155,000 220,500 165,376 2,310,000 1,282,050 200,000 150,000 2000,000 2100000 2310,000 2,541,00 1,100,000 1,423,076