Diamond Tuxedo Rental has been in business for four years. Because the company has recently had a

Question:

Diamond 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 companyâ€™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 20x5. (Round computations to one decimalplace.)

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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...