Question: Question 35 2.85714 points Save Answer Your Financial Statement Analysis Professor tells you to analyze financial statements for two companies that both distribute children's clothes.
Question 35 2.85714 points Save Answer Your Financial Statement Analysis Professor tells you to analyze financial statements for two companies that both distribute children's clothes. One of the ratios you are looking at is accounts receivable turnover (net credit sales / average net accounts receivable). ECW, Inc. has an accounts receivable turnover of 7.1 and DLW, Inc. has an accounts receivable turnover of 6.1. Based on these ratios, you can state that: ECW has a greater accounts receivable balance than DLW. The customers of ECW are paying their balances owed to ECW faster than the customers of DLW pay their balances to DLW. ECW has a greater bad debt expense than DLW. ECW is selling its inventory at a faster pace than DLW. ECW has greater sales than DLW
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