Pinecrest Company
Use the Selected Data from Pinecrest Company's Financial

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
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$\begin{array}{lrr}&2018&2017\\\text { Cash } & \$ 22,000 & \$ 14,000 \\\text { Accounts receivable } & 42,000 & 16,000 \\\text { Merchandise inventory } & 22,000 & 83,000 \\\text { Prepaid expenses } & 23,000 & 18,000 \\\text { Total current assets } & \$ 109,000 & \$ 131,000\\\\\text { Total current liabilities } & \$ 65,000 & \$ 72,000 \\\text { Net credit sales } & 221,000 & 326,000 \\\text { Cost of goods sold } & 168,000 & 299,000 \\\text { Net cash flow from operating activities } & 16,000 & 29,000\end{array}$ ​
-Refer to the data for Pinecrest Company.
Competitors in Pinecrest Company's industry have an average accounts receivable turnover of 10.8 times.Pinecrest reported accounts receivable at December 31,2018,of $42,000 and has normal credit terms requiring payment within 30 days.Pinecrest's accounts receivable turnover for 2018 is

A) indicating that the company probably has stricter credit terms and policies than the industry as a whole,which may repel potential buyers.
B) of no value to bankers and other creditors.
C) less efficient in its collection policies in 2018 than the industry as a whole.
D) less than the industry,which means that its customers are paying on their accounts in a more timely manner than are customers reflected by the industry average.