Question
2019 2018 2017 Sales trend 122.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Gross profit ratio 46.0% 48.2% 49.1% Average Collection Period (days) 38.83 37.92
2019 | 2018 | 2017 | |||||||
Sales trend |
| 122.0 |
|
| 115.0 |
|
| 100.0 |
|
Current ratio |
| 2.5 |
|
| 2.3 |
|
| 2.2 |
|
Gross profit ratio |
| 46.0% |
|
| 48.2% |
|
| 49.1% |
|
Average Collection Period (days) |
| 38.83 |
|
| 37.92 |
|
| 37.10 |
|
Inventory turnover |
| 7.3 |
|
| 7.2 |
|
| 7.0 |
|
Dividend yield |
| 7.1% |
|
| 6.5% |
|
| 5.8% |
|
Dividend payout ratio |
| 40% |
|
| 50% |
|
| 60% |
|
* There have been no changes in common stock outstanding over the three-year period.
Your boss asked you to review the results and determine if customers are paying the bills faster in 2019 than in 2017. Which of the following statements is the BEST answer to give your boss?
Multiple Choice
-
Customers are paying their bill faster in 2019 than in 2017 based on the inventory turnover.
-
Customers are paying their bill faster in 2019 than in 2017 based on the accounts receivable turnover.
-
Customers are paying their bill slower in 2019 than in 2017 based on the accounts receivable turnover.
-
Customers are paying their bill slower in 2019 than in 2017 based on the inventory turnover.
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