In 20A,C Co

Multiple Choice

In 20A,C Co.had an inventory turnover ratio of 6.11 while P Co.had a ratio of 10.67.Which of the following might most accurately explain the difference in their ratios?

A) C Co.had less inventory on hand in relation to their amount of cost of goods sold.
B) C Co.has a lower sales figure so cost of goods sold is lower leading to a higher turnover ratio.
C) C Co.takes a longer number of days to sell their inventory.
D) C Co.has a poor credit rating.