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The industry average number of days to collect accounts receivable is 35. ABC Company has Sales of $2,400,000 and an average Accounts Receivable balance of
The industry average number of days to collect accounts receivable is 35. ABC Company has Sales of $2,400,000 and an average Accounts Receivable balance of $250,000. What conclusions, if any, can be reached regarding ABC's handling of their receivables based on this information?
a. | ABC is collecting their receivables better than the industry average. | |
b. | ABC is collecting their receivables worse than the industry average. | |
c. | ABC is collecting their receivables at about the same as the industry average. | |
d. | Not enough information to draw a conclusion. |
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