Refer to Polaris’ financial statements in Appendix A to answer the following.

1. What is the amount of Polaris’ accounts receivable as of December 31, 2011 ?

2. Compute Polaris’ accounts receivable turnover as of December 31, 2011.

3. How long does it take, on average, for the company to collect receivables? Do you believe that cus¬ tomers actually pay the amounts due within this short period? Explain.

4. Polaris’ most liquid assets include

(a) cash and cash equivalents,

(b) receivables, and

(c) inventory. Compute the percentage that these liquid assets make up of current liabilities as of December 31, 2011. Do the same computations for December 31, 2010. Comment on the company’s ability to satisfy its cur¬ rent liabilities as of its 2011 year-end compared to its 2010 year-end.

5. What criteria did Polaris use to classify items as cash equivalents?

REPORTING IN ACTION Polaris Fast Forward 6. Access Polaris’ financial statements for fiscal years after December 31, 2011, at its Website (www.Polaris.com) or the SEC’s EDGAR database (www.SEC.gov). Recompute parts 2 and 4 and comment on any changes since December 31, 2011.