Jasper United had sales of $21,000 in 2011 and $24,000 in 2012.The firm's current accounts remained constant.Given this information,which one of the following statements must be true?
A)The total asset turnover rate increased.
B)The days' sales in receivables increased.
C)The net working capital turnover rate increased.
D)The fixed asset turnover decreased.
E)The receivables turnover rate decreased.

Question

Quizplus · Accepted Answer

Since sales increased while current accounts remained constant, the net working capital turnover rate, which is sales divided by net working capital, must have increased.

Jasper United Had Sales of $21,000 in 2011 and $24,000