The following ratios are available for Ming Inc.

Instructions
(a) Is Ming's short-term liquidity improving or deteriorating in 2017? Be specific in your answer, referring to relevant ratios.
(b) Do changes in turnover ratios affect profitability? Explain.
(c) Identify any steps Ming might have taken, or might wish to take, to improve its management of its accounts receivable and inventory turnovers.

Transcribed Image Text:

Current ratio Accounts receivable turnover Inventory turnover 2017 1.3:1 12 times 11 times 2016 1.5:1 10 times 9 times