My organization is AEP Healthcare. It has a current ratio of 2.5 (compared to the industry avg of 1.5). Our target ratio is 2.0.

In accounts receivable management, if we reduce days in the average collection period by speeding collections, which of the following is a better decision for AEP Healthcare?

A. Use that accounts receivable reduction to pay down outstanding debt.

B. Use that accounts receivable reduction to increase cash.