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Iffy Company and Benchmark Company operate in the same industry. Benchmark Company is widely viewed as managing its business very well and is the standard
Iffy Company and Benchmark Company operate in the same industry. Benchmark Company is widely viewed as managing its business very well and is the standard to which other companies compare themselves. Here are accounts receivable-related financial ratio values for Iffy and Benchmark for Year 1 and Year 2:
IFFY Year 1 Year 2
Receivables Turnover 12 10
Average Collection Period 30.4 36.5
BENCHMARK Year 1 Year 2
Receivables Turnover 15 16
Average Collection Period 24.3 22.8
Which ONE of the following statements is true?
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