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For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and one year ago
For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: (1-a) Compute days' sales uncollected. (1-b) Determine If days' sales uncollected improved or worsened in the current year. (2-a) Compute accounts recelvable turnover. (2-b) Determine If accounts recelvable turnover ratlo Improved or worsened in the current year. (3-a) Compute Inventory turnover. (3-b) Determine if Inventory turnover ratio Improved or worsened in the current year. (4-a) Compute days' sales In Inventory. (4-b) For each ratio, determine If days' sales in Inventory Improved or worsened in the current year
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