1. When analyzing financial statements, what can you conclude when the inventory turnover ratio increases from 4.0 to 6.0 over a three year period.
   1. The day’s inventory held are within the typical industry average
   2. The day’s inventory held has increased over time
   3. The day’s inventory held has decreased over time

2. When analyzing financial statements, what can you conclude when the accounts receivable turnover ratio decreases from 9.0 to 6.0 over a three year period.
   1. Collections are within standard terms
   2. The collection period has increased over time
   3. The collection period has decreased over time

3. When analyzing financial statements, what can you conclude when the accounts payable turnover ratio is 9.0 for the current year and 12.0 for prior years _______________________________________________________________________________________________________

4. When analyzing the  Statement of Cash Flows, what can you conclude when there is a  negative cash flow from operations, positive cash flow from investing (sale of fixed assets) and a positive cash flow from financing (borrowing from banks)_____________________________________________________________________________________________________________

Answer rating: 100% (QA)

Inventory Turnover Ratio Increase from 40 to 60 Conclusion The days inventory held has ... View the full answer