Write down why do you think there is a problem in CA(current asset) management
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Write down why do you think there is a problem in CA(current asset) management
![Asset Management Ratios
2020E
2019
2018
Ind.
FA TO
8.6x
6.4x .
10.0x
7.0x
ΤΑ ΤΟ
2.0x
2.1x
2.3x
2.6x
This problem was caused by excessive current assets.
' Inventories should be reduced and A/R collected faster.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8e2092a-b047-4fbe-8b7b-6350b6f3264f%2Fe49bb3e5-4f50-4d61-8156-4c3d47508d32%2Fn6vv26_processed.png&w=3840&q=75)
Transcribed Image Text:Asset Management Ratios
2020E
2019
2018
Ind.
FA TO
8.6x
6.4x .
10.0x
7.0x
ΤΑ ΤΟ
2.0x
2.1x
2.3x
2.6x
This problem was caused by excessive current assets.
' Inventories should be reduced and A/R collected faster.
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