Barker Sales has a days' sales in receivables figure of 40 and Xanadu Company has a days' sales in receivables of 32.This would suggest that Xanadu is having greater difficulty collecting its accounts receivable than Barker.

Question

Quizplus · Accepted Answer

A lower days' sales in receivables indicates that a company is collecting its accounts receivable more quickly, so Barker actually has greater difficulty collecting its accounts receivable than Xanadu.

Barker Sales Has a Days' Sales in Receivables Figure of 40