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You are analyzing a borrower whose sales have grown 1 0 % . You expect accounts receivable and inventory to increase proportionally; however, you find
You are analyzing a borrower whose sales have grown You expect accounts receivable and inventory to increase proportionally; however, you find they have not. What is the most likely explanation? Accounts receivable days on hand and inventory days on hand have decreased. Management has significantly improved the gross margin. Accounts payable days on hand have increased. 
You are analyzing a borrower whose sales have grown You expect accounts receivable and inventory to increase proportionally; however, you find they have not. What is the most likely explanation?
Accounts receivable days on hand and inventory days on hand have decreased.
Management has significantly improved the gross margin.
Accounts payable days on hand have increased.
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Principles Of Managerial Finance
Authors: Chad J. Zutter, Scott Smart
16th Edition
0136945880, 978-0136945888
