Use the information that follows taken from Campbell Company's financial statements for the years ending December 31, 2010 and 2009 to answer problems 45 through 48.

-Calculate Campbell's inventory turnover ratio and accounts receivable turnover ratio for the year ended 2010. Further, assume that in Campbell's industry, the industry average inventory turnover ratio is 12 and the industry average receivables turnover ratio is 14.
A) Campbell's inventory turnover ratio and accounts receivable turnover ratios are better than average for Campbell's industry.
B) Campbell's inventory turnover ratio and accounts receivable turnover ratios are worse than average for Campbell's industry.
C) Campbell's inventory turnover ratio is better but the accounts receivable turnover ratio is worse than average for Campbell's industry.
D) Campbell's inventory turnover ratio is worse and accounts receivable turnover ratio is better than average for Campbell's industry.

Question

Use the information that follows taken from Campbell Company's financial statements for the years ending December 31, 2010 and 2009 to answer problems 45 through 48.
 
-Calculate Campbell's inventory turnover ratio and accounts receivable turnover ratio for the year ended 2010. Further, assume that in Campbell's industry, the industry average inventory turnover ratio is 12 and the industry average receivables turnover ratio is 14.
A) Campbell's inventory turnover ratio and accounts receivable turnover ratios are better than average for Campbell's industry. 
B) Campbell's inventory turnover ratio and accounts receivable turnover ratios are worse than average for Campbell's industry. 
C) Campbell's inventory turnover ratio is better but the accounts receivable turnover ratio is worse than average for Campbell's industry. 
D) Campbell's inventory turnover ratio is worse and accounts receivable turnover ratio is better than average for Campbell's industry.

Quizplus · Accepted Answer

Campbell has the following turnover ratios on December 31, 2010:
 11eb49ea_73f0_3917_ae87_a735612ab927_TB5406_00 Inventory turnover is 12.14 compared to 12 for the industry and receivables turnover is 13.07 as compared to the industry average of 14. So, inventory turnover is better and accounts receivable turnover is worse.

Use the Information That Follows Taken from Campbell Company's Financial