Question

Bolster Soda had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Castor Soda had a turnover ratio of 9.3 this year and 9.3 last year. This implies:

A) Castors receivables turnover ratios were better than Bolsters for both years.

B) Bolsters receivables turnover ratios were better than Castors for both years.

C) Castor has credit policies that need to be tightened.

D) Castor collected receivables more quickly than Bolster in both years.

Answer

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