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You are comparing the working capital ratios of two companies in the same industry, Bayan Corp and Bedoor Corp. Below are selected data for both

You are comparing the working capital ratios of two companies in the same industry, Bayan Corp and Bedoor Corp. Below are selected data for both companies: Bayan Corp Bedoor Corp A/R turnover 9.4 times 20.2 times Inventory turnover 8.4 times 9.6 times A/P turnover 7.8 times 4.3 times What conclusion can be derived from the A/R turnover? A. Bedoor company high turnover indicates successful efforts in collecting cash B. Bayan Company low turnover may indicate extending credit to customers are too tight C. Both companies have low levels of turnover indicating the company is unsuccessful in its efforts to collect cash D. Bedoor Company high turnover may indicate extending credit to customers are too tight. 1 points QUESTION 14 You are comparing the working capital ratios of two companies in the same industry, Bayan Corp and Bedoor Corp. Below are selected data for both companies: Bayan Corp Bedoor Corp A/R turnover 9.4 times 20.2 times Inventory turnover 8.4 times 9.6 times A/P turnover 7.8 times 4.3 times How many additional days for which both companies must obtain financing? A. Bayan needs 34 days and Bedoor needs 29 days B. Bayan needs 130 days and Bedoor needs 141 days C. Bayan needs 34 days and Bedoor needs (29 days) D. Bayan needs 82 days and Bedoor needs 56 days 1 points QUESTION 15 You are comparing the working capital ratios of two companies in the same industry, Bayan Corp and Bedoor Corp. Below are selected data for both companies: Bayan Corp Bedoor Corp A/R turnover 9.4 times 20.2 times Inventory turnover 8.4 times 9.6 times A/P turnover 7.8 times 4.3 times What conclusion can be derived from A/P days outstanding for both companies? A. Bayan Company A/P outstanding is smaller than days inventory held indicates company strategically utilize supplier financing for its inventory B. Bedoor Company A/P outstanding days is larger than inventory held indicates the working capital financing the firm obtained from supplier C. Bedoor Company requires short term debt financing D. Bayan Company has less dependent on short term borrowing from banks compare to Bedoor Company

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