The following ratios are for Lin Inc. ___________________________2018________2017 Current ratio.................................1.5:1................1.3:1 Receivables turnover..............10 times..........12 times Inventory turnover....................9 times..........11
Question:
___________________________2018________2017
Current ratio.................................1.5:1................1.3:1
Receivables turnover..............10 times..........12 times
Inventory turnover....................9 times..........11 times
Instructions
(a) Is Lin's short-term liquidity improving or deteriorating in 2018? Explain.
(b) Identify any steps Lin might have taken, or wish to take, to improve the management of its accounts receivable and inventory.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Step by Step Answer:
a At first glance the increase in the current ratio might lead to the conclusion that Lins liquidity ...View the full answer
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Related Book For 
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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