Response to the following questions:
1. What is the preferred basis of comparison for ratio analysis?
2. What does a relatively high accounts receivable turnover indicate about a company's short-term liquidity?
3. Compute the annual dollar changes and percent changes for each of the following accounts.
2011 2010
Short-term investments . . . . . . . . $217,800 $165,000
Accounts receivable . . . . . . . . . . . 42,120 48,000
Notes payable . . . . . . . . . . . . . . . . 57,000 0