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XYZ Inc. has an average of 5 days Inventory on hand, 1 5 days accounts receivable and 3 0 days accounts payable. What are the
XYZ Inc. has an average of days Inventory on hand, days accounts receivable and days accounts payable. What are the implications of this on the accounts?
Accounts receivable would be much greater than accounts payable.
XYZ would have a relatively large current assets balance and very low current liabilities.
XYZ would have a relatively low accounts receivable balance, but a high current liabilities balance.
Accounts payable and cash would probably be very low.
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