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    Company Analysis

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    I'm trying to analyze a company's performance. I have the ratio's per year figured out, but there are still questions I have pertaining to the company.

    1. Is the investment in accounts receivable decreasing?
    2. Is the investment in plant assets increasing?
    3. Is the owner's investment becoming more profitable?
    4. Did the dollar amount of selling expenses decrease during the three year period?

    Please see attached for full question.

    © BrainMass Inc. brainmass.com June 3, 2020, 5:46 pm ad1c9bdddf


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    1. Is the investment in accounts receivable decreasing?
    accounts receivable turnover = total credit sales / accounts receivable
    Thus account receivable = Total sales / account receivable turnover
    From the calculation, we find that the account receivable ...