Punnichy Ltd. is a rapidly growing distributor of women's fashions. Cedric Punnichy, the company founder and president, has developed a knack for picking the fashions that capture the market's fancy each year. As a result, Punnichy has been approached by more and more retailers to supply clothes to them. In addition, existing customers have increased their purchases from Punnichy. As a result, Punnichy has increased the amount of inventory it carries, reflecting both increased demand and the need to carry a wider range of goods. Cedric Punnichy is concerned that control over the inventory is inadequate. He is also concerned about accounts receivable. Punnichy currently offers customers 30 days to pay. He has approached you to look at some data about the inventory to assess the situation, identify possible areas of weakness, and make recommendations for improvements. Cedric Punnichy has provided you with the following information:

Required:
Prepare a report to Mr. Punnichy addressing his concerns. Provide appropriate analysis of the data in yourreport.

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2017 4000S 2013 2016 2015 2014 Sales Cost of sales Accounts receivable Inventory $41,072,051 $35,406,941 $31,613,340 S27,731,000$25,210,000 26,080,753 22,306,73 19,853,178 17,331,875 15,630,200 5,748,969 4,905,259 4,185,098 3,869,256 3,151,250 13,632,77511,206,037 9,072,483 8,19149 6,252,080