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pleaseeee hurrrrryyy The following financial ratios are calculated from the financial statements of Jose Martinez Inc. Accounts receivable turnover =64 times Inventory turnover - 5
pleaseeee hurrrrryyy
The following financial ratios are calculated from the financial statements of Jose Martinez Inc. Accounts receivable turnover =64 times Inventory turnover - 5 times Accounts payable turnover = 9 times Quality of income = 2.45 Note: to convert any of the turnover ratios to number of days, you need to 365 by the turnover Which of the following statements is true? Select one: O a. Management is efficient at managing the Company's working capital because the combined average number of days it takes to sell inventory and to collect receivables is less than the average number of days it takes to pay suppliers by approximately 45 days. O b. Management is NOT efficient at managing the Company's working capital because the average number of days it takes to pay suppliers is higher than the combined average number of days it takes to sell inventory and to collect receivables by approximately 38 days. O c Management is efficient at managing the Company's working capital because the average number of days it takes to pay suppliers is less than the combined average number of days it takes to sell inventory and to collect receivables by approximately 45 days. O d. Management is NOT efficient at managing the Company's working capital because the combined average number of days it takes to sell inventory and to collect receivables is greater than the average number of days it takes to pay suppliers by approximately 38 days. O e. None of the statements make sense Step by Step Solution
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