Which statement correct according to abercrombie and fitch

Assignment Help Managerial Accounting

Reference no: EM132706845

The inventory turnover rates for Abercrombie & Fitch Co. (ANF) and TJX Companies (TJX) in 2015 are calculated as follows:

Inventory turnover rate ANF = 3.18

TJX = 6.85

Days inventory outstanding ANF = 114.78 days

TJX = 53.28 days

Problem 1: Which of the following statement is correct according to the information above?

A. TJX collects accounts receivable more quickly than ANF.

B. TJX sells inventory more quickly than ANF.

C. ANF sells inventory more quickly than TJX.

D. A lower inventory turnover rate is preferred so that ANF has the better inventory turnover ratio.

Reference no: EM132706845

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