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27 Apr 2012

Mgt201 Gdb #1 solution spring 2012

Solution:


Too high current ratio is also not good. It may mean heavy investment in current assets more than what is required. It may mean, accumulation of, dead and slow moving items in stock indicating inefficient purchase and poor inventory management; It may mean accumulation of doubtful debts in debtors and poor administration of credit policies in management of debtors. It may also mean that credit facility for purchases is not fully availed.

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