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How does the sales growth rates in recent years compare with the growth in inventory and accounts receivable? What might explain why these rates are similar or different?

In the last financial year, preliminary reports indicate that the company managed to generate $42.6 Million compared to the previous year where it generated $35.1 Million reporting an increase of 21.3% in revenue. Inventory grew by 16.9% and account receivable grew by 40.1% from 2005 to 2006.
Ceres is a service company and they carry fewer amounts of inventory compared to a typical manufacturing company. This is an explanation for the lower percentage increase between revenue and inventory. The percentage difference between account receivable and sale revenue is about 20%, this shows that Ceres Company has been very effective in collecting funds from debtors. Additionally, it can also be explained that debts from prior periods have also been collected.

What have been the key factors in the company’s growth?
The Ceres Gardening Company has been exceptional in many respects. At the outset, it is imperative to acknowledge its founders vision: It is the most profitable business in the organic farming sector and has grown successfully for the last 25 years it has been in operation. It began with a simple vision and mission of transforming lawns and home gardens into independent nurseries, gardens and immense farms in Northern California area and is expanding its business across United States quite rapidly.
With the increase in sales, Cere Gardening Company expanded its business structure by building a network of small, independent organic farms he locked into exclusive distribution agreement.
The development and growth can also be attributed to Ceres hands-on work ethic and approach in dealing with clients and suppliers. The company has been very aggressive in incorporating the views of

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