The days to collect receivables increased from 32 days last year to 48 days this year. Which of the following statements is correct?
A. The company is likely to see its Bad Debt Expense decrease.
B. The receivables turnover rate decreased from approximately 11.4 to 7.6 from last year to this year.
C. The company is becoming more efficient at collecting payment.
D. The receivables turnover rate must have increased from last year to this year.
Answer: B
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