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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. Company A Company B Current Ratio 3 2.50 Quick Ratio 0.90 1.40 Inventory Turnover 2.50 5 Days in Inventory 146 73 Accounts Receivable Turnover 8 8.50 Collection Period 45.63 42.94
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