The following selected ratios are available for Pampered Pets Inc. for the three most recent years:

Instructions
(a) Has the company's collection of its receivables improved or deteriorated over the last three years?
(b) Is the company selling its inventory faster or slower than in past years?
(c) Overall, has the company's liquidity improved or deteriorated over the last three years? Explain.

Transcribed Image Text:

2015 2014 2013 Current ratio Receivables turnover Inventory turnover 2.7:1 6.7 times 7.7 times 2.4:1 7.4 times 8.6 times 8.2 times 9.9 times