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BDS Inc. has an average collection period of 52 days. SDB has an average collection period of 48. Which of the following statements is true?

  • BDS Inc. has an average collection period of 52 days. SDB has an average collection period of 48. Which of the following statements is true?

  • SDB collects its receivables faster than BDS

  • Both companies have good liquidity

  • BDS has better liquidity than SDB

  • BDS collects its receivables faster than SDB

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