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

question 7

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
-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, 2016 of $42,000 and has normal credit terms requiring payment within 30 days.Pinecrest's accounts receivable turnover for 2016 is:

• A)probably 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 2016 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.