What can you say about the firm’s asset management?

You have been hired as a financial analyst for Cranwell Banking Institute (CBI). Your team is working on an independent assessment of Petsin Inc. Petsin Inc., a firm specialising in the production of pet supplies from China. Your assistant has provided you with data derived from the financial statements of Petsin Inc. and their industry; you can find the information (attached)

Using the information, and based on the role you are assuming, answer the following questions:
a) In the annual report to the shareholders, the CEO of Petsin Inc wrote, “2019 was a good year for the firm with respect to our ability to meet our short-term obligations. We had higher liquidity largely due to an increase in highly liquid current assets (cash, account receivables and short-term marketable securities).” Is the CEO correct? Explain and use only relevant information in your analysis. (50%)
b) What can you say about the firm’s asset management? Be as complete as possible given the above information, but do not use any irrelevant information. (50%)

Please make sure that you correctly cite and reference all secondary sources you use, and include a reference list.
The reference list will not be included in your final word count.

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