Improve management of receivables and inventory turnover

Assignment Help Accounting Basics
Reference no: EM13531648

The following ratios are available for Tym Inc.

Current ratio

2012

2011

Receivables turnover

1.3:1

1.5:1

Inventory turnover

12 times

10 times


11 times

9 times

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.

Reference no: EM13531648

Questions Cloud

Journalize the transactions for gwynne supply : Gwynne Supply Co. has the transactions related to notes receivable during the last 2 months-Journalize the transactions for Gwynne Supply Co.
Explain a sample of gas composed of carbon dioxide : A sample of gas composed of 5.7 grams of carbon dioxide and 3.6 grams of neon in a container with volume 5.7L and temp 67 degrees Celsius. what is the pressure of the gas mixture
Determine the total estimated uncollectibles : Determine the total estimated uncollectibles and prepare the adjusting entry at March 31, 2012, to record bad debts expense.
Compute the temprature of an argon : Calculate the temp of an argon sample at 55.4 kpa and 18.6L if it occupies 25.8 L at 75 degrees C And mass of 16g
Improve management of receivables and inventory turnover : Do changes in turnover ratios affect profitability? Explain - identify any steps Tym might have taken, or might wish to take, to improve management of receivables and inventory turnover.
Calculate what launch speed do you need : you are on the moon and would like to send a probe into space so that it does not fall back to the surface of the moon. what launch speed do you need
Explain a sample of nitrogen gas has a volume : A sample of nitrogen gas at 298 k And 745 torr has a volume of 37.42 L. what volume will it occupy if the pressure is increaaed to 119kpA at 345 K
Evaluate the power delivered to the particle : A 4.0 kg particle starts from rest at x = 0 and moves under the influence of a single force Fx = 6 + 4x - 3x2, where Fx is in newtons and x is in meters. Find the power delivered to the particle when it is at x = 2.0 m
Finance have to offer to senior corporate managers : 1. What does behavioral finance have to offer to senior corporate managers (CEOs) that may help them in doing their jobs at publicly held companies? (Hint: First you may want to list what senior corporate managers like CEOs do) Be sure to ad..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Actual overhead was 2200000 and actual direct labor hours

bubbas crawfish processing company uses a traditional overhead allocation based on direct labor hours. for the current

  Journal entries for truffles company

Truffles Company purchased merchandise on account from a supplier for $6,500, terms 2/10, net 30. Truffles returned $1,500 of the merchandise and received full credit. Truffles Company paid for the merchandise within the discount period.

  Preparing a budget showing the quantity of switches

Prepare a budget showing the quantity of switches to be purchased each month for January, February, and March and in total for the quarter.

  In a minimum 250-300 word response written in your own

in a minimum 250-300 word response written in your own words describe a real or hypothetical workplace accident and

  Contribution format income statement

Prepare a new contribution format income statement under each of the following conditions (consider each case independently):

  A company purchased 2000 of merchandise on nov 2 with terms

a company purchased 2000 of merchandise on nov. 2 with terms 210 n30. on nov. 8 it returned 500 worth of merchandise.

  How much of the payments will be included in len taxable

len is entitled to receive monthly payments of 1,500 over his life from his employer's qualifield pension plan the payments begin january 1, 2011 he contributed 71,500 to the plan prior to his retirement at age 62. using the simplified method, how..

  Using the fifo costing method prepare a process cost report

canned fruits and vegetables are the main products made by good foods. inc. all direct materials are added at the

  One company purchases all of the outstanding shares of

one company purchases all of the outstanding shares of another company. the acquiring company incurs the following

  Identifying three analytical procedures

Identify three analytical procedures that an auditor might perform with respect to plant assets and explain how they might assist in identifying potential misstatements.

  Explain the basics of accounting

Your father runs a small auto body shop. He has decided to computerize his records and has asked you to explain the basics of accounting to him so that he can enter the data into his accounting software.

  Identify the accounting principle relevant

Discuss weather it is ethical to record the revenue transaction in December. Identify the accounting principle relevant to this situation, and give the reasons underlying your conclusion.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd