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Indicate whether the ratios below are favorable or unfavorable in comparison to the Industry Average and explain what you understand from the trend. (4 marks)
- Indicate whether the ratios below are favorable or unfavorable in comparison to the Industry Average and explain what you understand from the trend. (4 marks)
- Recommend what the company should do to improve its ratios (1.5 marks)
| 2015 | 2016 | Industry Average |
Days sales in inventory | 40 | 50 | 45 |
Days sales in receivable |
| 70 days | 60 days |
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