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value: 2.50 points Asset Ratios Glowworms Inc has sales of $300,000, cost of goods sold of $225,000, average inventory of $45,000 and average recelvables of
value: 2.50 points Asset Ratios Glowworms Inc has sales of $300,000, cost of goods sold of $225,000, average inventory of $45,000 and average recelvables of $67,000. Industry average inventory period is 58 days and industry average days sales in recelvables is 75 days. All else the same, which of the following conclusions about Glowworm's ROA is correct? One can't tell whether Glowworms has a higher or lower ROA than the industry average because the inventory period is lower than the industry average but their days sales in receivables are higher than the industry average Glowworms has a lower ROA than the industry average. Glowworms has a higher ROA than the industry average. O One can't tell whether Glowworms has a higher or lower ROA than the industry average because the inventory period is higher than the industry average but their days sales in receivables are lower than the industry average
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