Ally Corp's days sales in receivables is 35. The industry average days sales in receivables is 41. Which of the following is CORRECT?O a. The firm sells its entire inventory every 35 days.b. It takes an average of 35 days for the firm to collect cash from its sales.O c. The firm is not as effective as an average firm in the industry in managing its assets.O d. Other firms in the industry collect sales at a much faster rate than the firm.A Moving to another question will save this response

Days Sales in Receivables (DSR) is a financial metric that measures the average number of days a…

Answered: Ally Corp's days sales in receivables…

Ally Corp's days sales in receivables is 35. The industry average days sales in receivables is 41. Which of the following is CORRECT?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Ally Corp's days sales in receivables is 35. The industry average days sales in receivables is 41. Which of the following is CORRECT?
O a. The firm sells its entire inventory every 35 days.
b. It takes an average of 35 days for the firm to collect cash from its sales.
O c. The firm is not as effective as an average firm in the industry in managing its assets.
O d. Other firms in the industry collect sales at a much faster rate than the firm.
A Moving to another question will save this response

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