Question: The following ratios are available for Tym Inc. Instructions(a) Is Tym??s short-term liquidity improving or deteriorating in 2012? Be specific in your answer, referring to

The following ratios are available for Tym Inc.

Instructions(a) Is Tym??s short-term liquidity improving or deteriorating in 2012? Be specific in your answer, referring to relevant ratios.(b) Do changes in turnover ratios affect profitability? Explain.(c) Identify any steps Tym might have taken, or might wish to take, to improve its management of its receivables and inventory turnover.

2012 1.3:1 12 times 2011 Current ratio Receivables turnover Inventory turnover 1.5:1 10 times 9 times

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a At first glance it appears that Tyms liquidity had deteriorated over the past year since the companys current ratio has fallen from 151 to 131 Howev... View full answer

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