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Company A has net sales of $1,000,000 and a collection period of 18.25 days. Company B also has net sales of $1,000,000, but has a
Company A has net sales of $1,000,000 and a collection period of 18.25 days. Company B also has net sales of $1,000,000, but has a collection period of 36.5 days. Which company would appear to have the more liquid receivables? O Company A, as their collection period is less than 30 days O Company B, as their collection period is higher than Company A O Company A, as their turnover ratio is higher than Company B O Company B, as their turnover ratio is higher than Company A
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