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Explain your answer with amounts. Days Sales Inventory Days Sales Receivables Analysis Company A 375,000/20,000-18.75 365/18.75.-19.46 19 days 800,000/40,000-20 365/20 18.25 18 days Company B 700,000/ 30,000 23.3 365/23.3 15.67 16 days 800,000/40,000 - 20 365/20 18.25 18 days

Explain your answer with amounts. Days Sales Inventory Days Sales Receivables Analysis Company A 375,000/20,000-18.75 365/18.75.-19.46 19 days 800,000/40,000-20 365/20 18.25 18 days Company B 700,000/ 30,000 23.3 365/23.3 15.67 16 days 800,000/40,000 - 20 365/20 18.25 18 days

FINANCIAL ACCOUNTING
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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Which company does a better job of selling their inventory faster? Explain your answer with amounts. Days Sales Inventory Days Sales Receivables Analysis Company A 375,000/20,000=18.75 365/18.75.-19.46 19 days 800,000/40,000=20 365/20=18.25 18 days Company B 700,000/ 30,000 = 23.3 365/23.3 15.67 16 days 800,000/40,000=20 365/20 18.25 18 days
Transcribed Image Text:Which company does a better job of selling their inventory faster? Explain your answer with amounts. Days Sales Inventory Days Sales Receivables Analysis Company A 375,000/20,000=18.75 365/18.75.-19.46 19 days 800,000/40,000=20 365/20=18.25 18 days Company B 700,000/ 30,000 = 23.3 365/23.3 15.67 16 days 800,000/40,000=20 365/20 18.25 18 days
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