The following ratios are available for Tym Inc. Instructions(a) Is Tym??s short-term liquidity improving or deteriorating in
Question:
The following ratios are available for Tym Inc.
Instructions(a) Is Tym??s short-term liquidity improving or deteriorating in 2012? Be specific in your answer, referring to relevant ratios.(b) Do changes in turnover ratios affect profitability? Explain.(c) Identify any steps Tym might have taken, or might wish to take, to improve its management of its receivables and inventory turnover.
2012 1.3:1 12 times 2011 Current ratio Receivables turnover Inventory turnover 1.5:1 10 times 9 times
Step by Step Answer:
a At first glance it appears that Tyms liquidity had deteriorated over the past year since the companys current ratio has fallen from 151 to 131 Howev...View the full answer
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Accounting questions
-
The following ratios are available for Garcia Inc. Instructions (a) Is Garcias short-term liquidity improving or deteriorating in 2010? Be specific in your answer, referring to relevant ratios. (b)...
-
The following ratios are available for fast-food competitors and their industry, for a recent year: Instructions (a) Which company is more liquid? Explain. (b) Which company is more solvent? Explain....
-
The following ratios are available for toolmakers Best Tools, Inc. and Snappy Tools Incorporated, and their industry, for a recent year: Instructions (a) Which company is more liquid? Explain. (b)...
-
Name the following compounds.
-
Determine the sag of a 30-ft chain that is attached to two points at the same elevation that are 20 ft apart.
-
A car originally sold for $25,900. It depreciates exponentially at a rate of 8.2% per year. Nina put $10,000 down and pays $550 per month to pay off the balance. After how many years will her car...
-
The Plant Assets account of Star Media shows the following: Star Media sold plant assets at a \(\$ 10,000\) loss. Where on the statement of cash flows should Star. Media report the sale of plant...
-
The investment committee of Grid Iron Restaurants Inc. is evaluating two restaurant sites. The sites have different useful lives, but each requires an investment of $565,000. The estimated net cash...
-
A company purchased 10 computers from a manufacturer. They paid their bill after 45 days with a finance charge of $180. The manufacturer charges 12% interest. Find the cost of the computers excluding...
-
Target and Kohl's are chains of stores that cater to customers who desire name-brand goods at lower prices. The Securities and Exchange Commission (SEC) Form 10-K filing rules require management of...
-
The following information was taken from the 2009 financial statements of FedEx Corporation, a major global transportation/delivery company. InstructionsAnswer each of the following questions.(a)...
-
On March 3, Pitrof Appliances sells $710,000 of its receivables to American Factors Inc. American Factors Inc. assesses a service charge of 4% of the amount of receivables sold. Instructions Prepare...
-
In Prob. 10, could you start from [0 0] T and do 5 steps? Data form Prob. 10 Apply the method of steepest descent to f(x) = 9x 2 1 + x 2 2 + 18x 1 - 4x 2 , 5 steps. Start from x 0 = [2 4] T .
-
1) Visit the Web site of Venezuela's Central Bank and examine its foreign reserves and official settlement transactions. In a response of at least 100 words, explain how the Central Bank of Venezuela...
-
Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.65 per pound. 16,100 units used 35,400 pounds, which were purchased at $3.85 per pound. This...
-
A buck converter with constant-frequency peak-current-mode control has VInom = 28 V, VO = 20 V, L = 301 H, fs = 100 kHz, and efficiency = 1. Find the ramp slope for the optimum compensation and the...
-
Suppose that a train robber decides to stop a train inside a tunnel. The proper length of the train is 60 m, while the proper length of the tunnel is 50 m. The train is traveling at 4/5 the speed of...
-
At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $12.9 million. $9.9 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023...
-
The property of a star that relates to the amount of energy per unit time it is producing is its (a) luminosity. (b) apparent brightness. (c) color. (d) volume. (e) mass.
-
The area of square PQRS is 100 ft2, and A, B, C, and D are the midpoints of the sides. Find the area of square ABCD. B A
-
A scientist at an Air Force Research Laboratory in California has studied highly energetic materials (explosivematerials) and, more significantly, has lived to tell about it. In 2000, he and his...
-
Ned Walz started his own delivery service, Walz Service Inc., on June 1, 2014. The following transactions occurred during the month of June. June 1 Stockholders invested $20,000 cash in the business...
-
Joe Thyme opened Thyme Company, a veterinary business in Neosho, Missouri, on August 1, 2014. On August 31, the balance sheet showed Cash $9,000; Accounts Receivable $1,700; Supplies $600; Equipment...
-
Beefeaters RV Park was started on April 1 by Sarah Rhodes. These selected events and transactions occurred during April. Apr. 1 Stockholders invested $100,000 cash in the business in exchange for...
-
answer the following questions to help me further understand the text. 1. Identify the audience 2. Who needs the analysis of the text that you will communicate in your project? This will be the...
-
I need s fresh set of eyes with a new outlook on this same question that consistently tells me it's already been asked and do I want to unlock that answer. NO! I would like another expert to read my...
-
Do you think Google Corporation is a "monopoly" or is violating antitrust "unfair competition" rules/laws? (Google currently has about 89 percent of the U.S. search engine market, with Bing having...
Study smarter with the SolutionInn App