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A financial analyst is analyzing the accounts receivable period for three companies by comparing their days' sales in receivables. The financial analyst has collected the
A financial analyst is analyzing the accounts receivable period for three companies by comparing their days' sales in receivables. The financial analyst has collected the information shown here for the companies. Company A Company B Company C Net credit sales $175,000 $145,000 $225,000 10,000 20,000 11,500 Average accounts receivable, net Average allowance for uncollectible accounts 3,500 6,500 4,500 If each of the companies has credit terms of net 30 days, the financial analyst is most likely to conclude which one of the following? *Source: Retired ICMA CMA Exam Questions. Company C is less efficient than Company A in collecting payment. Company B is more efficient than Company C in collecting payment. Company A is the most efficient in collecting payment. Company B is the least efficient in collecting payment
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