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Homework answers / question archive / Which of the following statements is true? Assuming all else holds constant, if the average accounts receivable decreases, then the margin will increase Assuming all else holds constant, if the average accounts receivable decreases, then the margin will decrease Assuming all else holds constant
Which of the following statements is true? Assuming all else holds constant, if the average accounts receivable decreases, then the margin will increase Assuming all else holds constant, if the average accounts receivable decreases, then the margin will decrease Assuming all else holds constant. If the average accounts receivable decreases, then the turnover will increase Assuming all else holds constant. If the average accounts receivable decreases, then the turnover will decrease
C. if all else holds constant, average accounts recevaible decrese then turnover will increase
let suppose :
Cogs= 300000
average receivables = 100000
Turnover ratio
= 3
now, if average turnover will be 90000
then turnoverr ratio will be 3.333