1. Perform Inc.'s Cash Flow Analysis
... very important to collect on their accounts because the longer an account is delinquent the less likely it becomes collectible. Ratio analysis was used to determine the receivables turnover for each year, as well as, the average collections period for each year. The resulting numbers were alarming, in 1995, the company's receivable turnover ratio was 4.91 and the average collection period was 74.3 days; in ... 1996 the company's turnover ratio was 4.83 and the average collection period ... low profit margins. Profits margins are simply the money left over after paying all the costs of r...
- Word Count: 662
- Approx Pages: 3
- Grade Level: High School