Accounts receivable turnover rate

Company A:

Company B:

Inventory turnover rate

Company A:

Company B:

b) To which company would you prefer to sell $25,000 in merchandise on a 30-day open account? Company A or Company B.? Why? Explain (5 points)

Norma No Spacing Heading 1 4. Shown below are selected financial data for Company A and Company B at the end of the current year: Net credit sales Cost of goods sold Cash Accounts receivable (net) Inventory Current liabilities Company A $675,000 504,000 53,000 75,000 84,000 105,000 Company B $560,000 480,000 22,000 70,000 160,000 100,000 a) For each of the two companies, compute the following and FILL THE TABLE (10 points) Company A Company B Working capital Current ratio Quick ratio Accounts receivable turnover rate Inventory turnover rate Working capital: Company A: Company B: Current ratio: Company A: Company B: Quick ratio: Company A I Company B: Turkish Turkey 50 Focus E