A). A company's profitability may suffer from holding too much working capital. This statement is...
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Accounting
A). A company's profitability may suffer from holding too much working capital. This statement is True or False?
B).Senath Company's annual report reveals net credit sales of $240,000 and average accounts receivable of $20,000. The report also shows an average inventory balance of $10,000 and cost of goods sold of $200,000. Based on this information (treat any partial day as a whole day)
Multiple Choice
a. the average number of days to collect receivables is 12.
b. the average number of days to collect receivables is 31.
c. the accounts receivable turnover is 20.
d. the accounts receivable turnover is 19.
C). Firth Company's annual report shows an average inventory balance of $40,000 and cost of goods sold of $200,000. Total assets amount to $400,000 and liabilities amount to $100,000. Based on this information (treat any partial day as a whole day)
Multiple Choice
a. the average number of days to sell inventory is 35.
b.the average number of days to sell inventory is 73.
c. the inventory turnover is 10.
d. the inventory turnover is 2.5.
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