acct213 16-5 - because that means that the company is not...

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Year 5 Year 4 Year 3 Year 2 Sales $5,625  25% $5,400  20% $4,950  10% $4,725  Current Assets:   Cash 64 -20% 72 -10% 84 5% 88   Accounts Receivable 590 48% 496 24% 432 8% 416   Inventory 896 12% 880 10% 816 2% 864 Total Current Assets 1520 19% 1448 13% 1332 4% 1368 Current Liabilities 390 30% 318 6% 324 8% 330 Although Sales have been increasing, the trend also shows that cash is decreasing and that accounts re and inventory have also been increasing. It is not good for accounts receivable to increase, especially by
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Unformatted text preview: because that means that the company is not collecting on their accounts. The inventory increasing may s they are over producing their products. In the last year current liabilities have also increased dramatically which may or may not be a good thind depending on why. Year 1 6% $4,500 10% 80 4% 400 8% 800 7% 1280 10% 300 ceivable y that muc show that y...
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acct213 16-5 - because that means that the company is not...

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