Gonzales determined that Company A had an operating cycle of 100 days in 20X2, whereas Company D had an operating cycle of 145 days for the same fiscal year. This means that:

A. Company D’s inventory turnover is less than that of Company A.

B. Company D’s inventory turnover is greater than that of Company A.

C. Company D’s cash conversion cycle is shorter than that of Company A.

Mary Gonzales is evaluating companies in the office supply industry and has compiled the following information:

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Company Credit Sales ($) 20X1 Average Receivables Balance ($) Credit Sales ($) A 5.0 million 1.0 million 6.0 million 20X2 Average Receivables Balance ($) 1.2 million B 3.0 million 1.2 million 4.0 million 1.5 million C 2.5 million 0.8 million 3.0 million 1.0 million D 0.5 million 0.1 million 0.6 million 0.2 million Industry 25.0 million 5.0 million 28.0 million 5.4 million