All-State Moving had sales of $899,000 in 2017 and $967,000 in 2018. The firm's current accounts remained constant. Given this information, which one of the following statements must be true?
A) The total asset turnover rate increased.
B) The days' sales in receivables increased.
C) The net working capital turnover rate increased.
D) The fixed asset turnover decreased.
E) The receivables turnover rate decreased.

Question

Quizplus · Accepted Answer

The net working capital turnover rate increased because sales increased while current accounts, which are part of net working capital, remained constant.

All-State Moving Had Sales of $899,000 in 2017 and $967,000