1. A company’s total current assets have increased by 5% over the prior year. Management is concerned, however, about the composition of the current assets. Why is the composition of current assets...

1. A company’s total current assets have increased by 5% over the prior year. Management is concerned, however, about the composition of the current assets. Why is the composition of current assets important?

2. Describe the operating cycle for a manufacturing company. How would the cycle differ for a retailer?