Question 111 pts

Selected data from Britt Company's financial statements are provided below.

	2014	2013	2012
Cash	$24 000	$17 000	$8 000
Accounts receivable	43 000	13 000	55 700
Inventory	27 000	73 000	40 000
Prepaid expenses	21 000	15 000	20 500
Total current assets	115 000	118 000	124 200
Total current liabilities	$62 000	$75 000
Net credit sales	231 000	322 000
Cost of goods sold	165 000	297 000
Net cash flows from operating activities	17 000	28 000

Assume that competitors in Britt's industry have an average receivable turnover ratio of 7.8 times in 2014. Britt's receivable turnover ratio for 2014 is:

Group of answer choices

an indicator that Britt has tightened its credit policies

an indicator that Britt's assets are less efficient in 2014 than in 2013

Below the industry average

Above the industry average