A company manufactures beach umbrellas and sells to store in high summer traffic sots (ex. Pentiction ,Kelowna)....

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General Management

Acompany manufactures beach umbrellas and sells to store in highsummer traffic sots (ex. Pentiction ,Kelowna). Ownership hasapproached you to invest in their business. You notice thatreceivables turnover has increased from 33 days to 51 dats over afour-month period. if you were interviewing managment, whatquestions would you ask them to determine if this represents apotential problem?

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Solution An increase in the receivable turnover days can occur due to the following reasons A poor collection system of the company A slowdown in sales and the market An offseason time A problem with the supplies which are not as pe standards and hence there See Answer

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