Ike Tuxedo Rental has been in business for four years. Because the company has recently had a cash flow problem, management wonders whether there is a problem with receivables or inventories. Here are selected figures from the company’s financial statements (in thousands):

Compute the receivable turnover, inventory turnover, and payables turnover for each of the four years and comment on the results relative to the cash flow problem that the firm has been experiencing. Merchandise inventory was $11,000, accounts receivable were $11,000, and accounts payable were $4,000 in 2008. (Round computations to one decimalplace.)

  • CreatedSeptember 10, 2014
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