The results of the preliminary analytical review for Monk, Inc. include the following:

The ratios have not changed significantly over the past year. Does this finding suggest that risk in these areas is assumed to be lower than if the ratios had changed dramatically? Give an example for each ratio where its lack of change would be cause for concern.

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12-31-06 12-31-07 Days receivables outstanding 31.4 32.2 Inventory turnover 2.7X 2.5X Depreciation expense (as a % of fixed assets) 12% 13%