1. Ration Analysis
... ' sales in accounts receivable is 96.2 days and in 2001 is 94 days. This ratio seems scientifically high and may have adverse impact on Sample Company's cash flow and may force unnecessary debt to cover liabilities. Typically, accounts receivable are due within 30 days, depending on credit agreements. This ratio may cause question of Sample Co. cash flow efficiency. Inventory ... growth. The number of days' sales in accounts receivable is of major concern for the company's inventory efficiency and cash flow. More information is necessary to assess the company. The analysis of the financ...
- Word Count: 1154
- Approx Pages: 5
- Grade Level: High School