A firm's annual credit sales are $1.2 million and its average receivables are $150,000. Assuming a 360-day year, the average collection period (ACP) is

a. 20 days.

b. 45 days.

c. 30 days.

d. 60 days.

If an analyst wanted to compute a rough measure of a firm's financial risk, which of the following types of ratios would be preferred?

		a. liquidity ratios
		b. coverage ratios
		c. profitability ratios
		d. debt ratios