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Review the Activity ratio trend chart for ABC, Inc. below and determine which of the following statements would be accurate: a. AR turnover has deteriorated

Review the Activity ratio trend chart for ABC, Inc. below and determine which of the following statements would be accurate:

a. AR turnover has deteriorated and is of concern.

b. Accounts payable turnover is showing significant deterioration and trade creditors may place ABC on a cash only basis.

c. Inventory is well controlled and is showing stability.

d. ABCs collection of AR has likely created a cash crisis, forcing past due accounts payable, even with steady inventory control.

e. All of the above.

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