2A2M ZUBIN CORPORATION EXPERIENCES A DECREASE IN SALES AND THE COST O...

54.

CSO: 2A2c

LOS: 2A2m

Zubin Corporation experiences a decrease in sales and the cost of good sold, an increase

in accounts receivable, and no change in inventory. If all else is held constant, what is

the total effect of these changes on the receivables turnover and inventory ratios?

Inventory

Receivables

Turnover

Turnover

a.

Increased;

Increased.

b.

Increased;

Decreased.

c.

Decreased;

Increased.

d.

Decreased;

Decreased.