The following information is available about two companies, A Ltd and B Ltd

Which of the following statements is correct while making a comparison of company A with company B?

(a) Company A has the higher gross profit margin percentage and the shorter customers’ collection period.

(b) Company A has the lower gross profit margin percentage and the longer customers’
collection period.

(c) Company A has the higher gross profit margin percentage and the longer customers’ collection period.

(d) Company A has the lower gross profit margin percentage and the shorter customers’ collection period.

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Sales Cost of sales Receivables (debtors) A Ltd 3,000 2,200 250 B Ltd 3,000 1,800 300