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solve An analyst gathered the following data for two companies in the same industry: Company A Company B Days sales outstanding 24 30 Days of
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An analyst gathered the following data for two companies in the same industry: Company A Company B Days sales outstanding 24 30 Days of inventory on hand 25 31 Number of days payables 44 40 Current assets $182,000 $189,000 Total assets $401,000 $569,000 Current liabilities $60,000 $66,000 Total liabilities $329,000 $450,000 Shareholders' equity $132,000 $121,000 Which of the following is the most appropriate conclusion the analyst can make? Comaped to Company B. Company A: a. has more financial risk. b. in more liquid c. has a longer cash conversion cycle Step by Step Solution
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