The numbers in each choice are the percentages of total receivables as follows: Receivables 60 days old, respectively. Which of the following results represents the best cash flow? A) 75, 15, 10 B) 30, 33, 37 C) 40, 45, 15 D) 50, 30, 20

Question

The numbers in each choice are the percentages of total receivables as follows: Receivables < 30 days old, 31-60 days old, and > 60 days old, respectively. Which of the following results represents the best cash flow?
A) 75, 15, 10
B) 30, 33, 37
C) 40, 45, 15
D) 50, 30, 20

Quizplus · Accepted Answer

Option A represents the best cash flow because it has the highest percentage of receivables that are less than 30 days old (75%), indicating that the company is collecting its receivables more quickly than the other options. This means the company has more liquid assets available in the short term.

The Numbers in Each Choice Are the Percentages of Total