Which company is better in collecting on credit sales


Question: Deep Purple Inc has sales of $1,387,400, costs of goods sold of $891,400, inventory of $188,936, and accounts receivable of $94,800. Pink Floyd has sales of $2,125,900, costs of goods sold of $1,125,200, inventory of $225,600, and accounts receivable of $205,700. Which company is better in collecting on credit sales and why? Pink Floyd; higher amount of inventory carried. Deep Purple; lower Inventory turover. Pink Floyd; lower inventory turnover. Deep Purple; fewer days in inventory

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Accounting Basics: Which company is better in collecting on credit sales
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