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Chapter 14 Practice Test Question 17 Asset Ratios Glowworms Inc has sales of $475,000, cost of goods sold of $315,000, average inventory of $45,000 and
Chapter 14 Practice Test Question 17 Asset Ratios Glowworms Inc has sales of $475,000, cost of goods sold of $315,000, average inventory of $45,000 and average receivables of $49,000. Industry average inventory period is 46 days and industry average days sales in receivables is 32 days. All else the same, which of the following conclusions about Glowworm's ROA is correct? Multiple Choice Glowworms has a lower ROA than the industry average. O One can't tell whether Glowworms has a higher or lower ROA than the industry average because the inventory period is higher than the industry average but their days sales in receivables are lower than the industry average. O Glowworms has a higher ROA than the industry average. O One can't tell whether Glowworms has a higher or lower ROA than the industry average because the inventory period is lower than the industry average but their days sales in receivables are higher than the industry average. Chapter 14 Practice Test Question 17 Asset Ratios Glowworms Inc has sales of $475,000, cost of goods sold of $315,000, average inventory of $45,000 and average receivables of $49,000. Industry average inventory period is 46 days and industry average days sales in receivables is 32 days. All else the same, which of the following conclusions about Glowworm's ROA is correct? Multiple Choice Glowworms has a lower ROA than the industry average. O One can't tell whether Glowworms has a higher or lower ROA than the industry average because the inventory period is higher than the industry average but their days sales in receivables are lower than the industry average. O Glowworms has a higher ROA than the industry average. O One can't tell whether Glowworms has a higher or lower ROA than the industry average because the inventory period is lower than the industry average but their days sales in receivables are higher than the industry average
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