Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following information regarding liquidity measures: Hint1: Liquidity is how quickly the firm can generate cash Hint2: Consider the trends through time 2018 2017
| Consider the following information regarding liquidity measures: | ||||
| Hint1: Liquidity is how quickly the firm can generate cash | ||||
| Hint2: Consider the trends through time | ||||
| 2018 | 2017 | 2016 | ||
| Days of Inventory on Hand | 77 | 71 | 65 | |
| Days Sales Outstanding | 38 | 41 | 45 | |
| Number of days of payables | 49 | 47 | 46 | |
A. Receivables management has led to improved overall liquidity
B. Inventory management has led to improved overall liquidity
C. Inventory management has led to worsening overall liquidity
D. Payables management has not impacted liquidity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
