Question
Which of the following ratios would best disclose effective management of working capital by a given firm relative to other firms in the same industry?
Which of the following ratios would best disclose effective management of working capital by a given firm relative to other firms in the same industry?
a. a high rate of financial leverage relative to the industry average
b. a high number of days' sales uncollected relative to the industry average
c. a high turnover of net working capital relative to the industry average
d. a high number of days' sales in inventory relative to the industry average
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
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