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Wisconsin operates in the fashion wholesale business and its management team has become increasingly concerned about the liquidity of the entity

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Wisconsin operates in the fashion wholesale business and its management team has become increasingly concerned about the liquidity of the entity. It has asked you for your opinion and you have calculated the following ratios to help you with your assessment: 30 June 20x1 30 June 20X0 Inventory holding period 110 days 54 days 67 days 70 days Receivables collection period Payables payment period 150 days 100 days Current ratio 1.5:1 1.8:1 Quick ratio 0.7:1 1.4:1 Which one of the following is NOT a valid statement about the ratios shown above? Select one: 0 a. The increase in inventory holding period is a significant concern as there a high risk of obsolescence in the industry. b. The deterioration in the ratios shown at the 30 June 20x1 year-end could simply be a result of a significant purchase of goods being made on credit terms close to the year-end. c. Wisconsin are attempting to finance their increased inventory holding period by delaying payments to suppliers. d. The significant increase in payables payment period will have caused the cash position to worsen dramatically. O