Solution-Describe the possible reasons for the differences

Describe the possible reasons for the differences

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Reference no: EM133043546

Question - Milo Ltd and Lucy Ltd are both engaged in the sale of handbags, but they seem to approach it differently according to the following information:

Ratio	Milo Ltd	Lucy Ltd
Average collection period of receivables	21 days	63 days
Inventory turnover period	25 days	50 days
Gross Margin	20%	40%

Based on the three financial ratios, describe the possible reasons for the differences in approach between the two businesses.

Provide one recommendation for Milo Ltd to improve its gross margin.

Reference no: EM133043546

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Describe the possible reasons for the differences

Reference no: EM133043546

Reference no: EM133043546

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