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.