For each of the following liquidity ratios, indicate whether the change would be viewed as an improvement

Question:

For each of the following liquidity ratios, indicate whether the change would be viewed as an improvement or deterioration: 

a. A decrease in the receivables turnover 

b. A decrease in the collection period

c. An increase in the days sales in inventory 

d. An increase in the inventory turnover 

e. A decrease in the acid-test ratio 

f. An increase in the operating cycle

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Principles Volume 2

ISBN: 9781119786634

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

Question Posted: