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The following information is taken from the financial statements of two companies that have applied to your bank for short-term credit. The bank will extend
The following information is taken from the financial statements of two companies that have applied to your bank for short-term credit. The bank will extend credit to one of the company only. Your responsibility is to recommend your manager whichever company you believe performs better. Current Ratio Quick Ratio Inventory Turnover Days in Inventory Accounts Receivable Turnover Collection Period Company A 3 0.90 2.50 146 8 45.63 Company B 2.50 1.40 5 73 8.50 42.94
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