Question
In the table below the information for four companies is provided. Company Accounts Receivable turnover Average collection period Martin 13.9 26.3 Lewis 13.3 27.4 Danforth
In the table below the information for four companies is provided.
| Company | Accounts Receivable turnover | Average collection period |
| Martin | 13.9 | 26.3 |
| Lewis | 13.3 | 27.4 |
| Danforth | 10.4 | 35.1 |
| Garner | 14.5 | 25.2 |
| Industry Average | 13.0 | 28.1 |
Assuming all four companies are in the same industry, which company appears to have the greatest likelihood of paying its current obligations?
| A. | Danforth | |
| B. | Lewis | |
| C. | Garner | |
| D. | Martin |
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Understanding Financial Accounting
Authors: Christopher D. Burnley
3rd Canadian Edition
1119715474, 9781119715474
