The following ratios are available for Tym Inc.

a)Is Tym%u2019s short-term liquidity improving or deteriorating in 2012? Be specific in your answer, referring to relevant ratios.

b)Do changes in turnover ratios affect profitability? Explain.

c) Identify any steps Tym might have taken, or might wish to take, to improve its management of its receivables and inventory turnover.

		2012			2011
Current ratio		1.3	:1		1.5	:1
Receivables turnover		12	times		10	times
Inventory turnover		11	times		9	times