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Companies a and B Both Report Net Income Growing at 12

Question 99

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Companies A and B both report net income growing at 12% per year.Company A has a receivables turnover ratio of 5.6,which is smaller than its previous year.Company B has a receivables turnover ratio of 11.3,which is higher than its previous year.All other things equal:


A) Company A appears to be better managed.
B) Company A will have the lower days-to-collect measure.
C) Company B appears to be better managed.
D) Company B's days-to-collect measure is rising.

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