In 2012,P Co reported a trade payables turnover ratio of 2.49 and C Co reported a turnover ratio of 1.74 for that same year.Which of the following statements is true?
A)C Co pays their vendors in a more timely manner than P Co pays their vendors.
B)On a comparative basis to cost of goods sold,P Co carries more in average payables than does C Co.
C)It is unclear if P Co pays their vendors in a more timely manner than C Co.
D)P Co took approximately 147 days while C Co took about 210 days to pay vendors.

Question

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The Answer of In 2012,P Co reported a trade payables turnover ratio of 2.49 and C Co reported a turnover ratio of 1.74 for that same year.Which of the following statements is true?
A)C Co pays their vendors in a more timely manner than P Co pays their vendors.
B)On a comparative basis to cost of goods sold,P Co carries more in average payables than does C Co.
C)It is unclear if P Co pays their vendors in a more timely manner than C Co.
D)P Co took approximately 147 days while C Co took about 210 days to pay vendors.

In 2012,P Co Reported a Trade Payables Turnover Ratio of 2.49