1.

(TCO F) Analysts maintain that two of the most important ratios are inventory turnover and accounts receivable turnover.

1. You are analyzing XYZ Company, a tractor manufacturer. You notice that inventory turnover this year is significantly lower than prior years. Providetwoexplanations that would be consistent with this observation. Explain whether these would be a good sign or if these would be a concern to you and what the effect might be on next period's financial results.

2. You are analyzing XYZ Company, a tractor manufacturer. You notice that accounts receivable turnover this year is significantly lower than prior years. Providetwoexplanations that would be consistent with this observation. Explain whether these would be a good sign of if these would be of concern to you and what the effect might be on next period's financial results.