1. Find the commonality between the four financial ratios below and explain why they are important to a business manager:
Current Ratio
Acid Test Ratio
Accounts Receivable Turnover
Inventory turnover
2. Krueger Industrial Smoothing has an accounts receivable balance of $350,000 and 15 days of sales in receivables. By how much would Krueger’s receivable balance increase if it increased its days sales in receivables to the industry average of 32 days?