Wilson Corporation Has The Following Financial Data; Inventory Of $3 Million, Cost Of Goods Sold Of $6 Million And No Accounts Receivable. Jensen Corporation Has The Following Financial Data; Accounts Receivable Of $2.1 Million, Sales Of $12 Million, Inventory Of $1 Million And Cost Of Goods Sold Of $5 Million. Which Of The Following Statements Is True? A.
Wilson Corporation has the following financial data; inventory of $3 million, cost of goods sold of $6 million and no accounts receivable. Jensen Corporation has the following financial data; accounts receivable of $2.1 million, sales of $12 million, inventory of $1 million and cost of goods sold of $5 million. Which of the following statements is true?
A. Jensen’s inventory turnover is 5 and Wilson’s days receivables is 0
B. Wilson’s days inventory is 33 and Jensen’s inventory turnover is 11
C. Jensen has lower operating cash flow than Wilson because it has a higher inventory turnover ratio
D. Wilson’s days inventory is 104 and Jensen’s accounts receivable turnover is 9