The following ratios are available for Ming Inc. 

Instructions 

a. Is Ming’s short-term liquidity improving or deteriorating in 2022? Be specifi c in your answer, referring to relevant ratios. 

b. Do changes in turnover ratios aff ect profi tability? Explain. 

c. Identify any steps Ming might have taken, or might wish to take, to improve its management of its accounts receivable and inventory turnovers.

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2022 2021 Current ratio Accounts receivable turnover Inventory turnover 1.3:1 12 times 11 times 1.5:1 10 times 9 times