Unformatted text preview: difficulties. In any case, the company should do an analysis of its trade receivables on a regular basis and monitor collection efforts from potentially delinquent accounts. The average days’ supply of inventory depends on the nature of the goods sold by the company and the reliability of its suppliers. To evaluate the measure properly, one must compare it to previous levels as well as to the industry average. E13-11 Transaction Debt-to-equity ratio Times Interest Earned ratio Cash Coverage ratio a. Decrease No change No change b. Increase No change No change c. Decrease No change No change d. Increase Decrease No change e. No change No change No change...
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- Fall '08
- average age, high average collection, outstanding trade receivables