Biology Forums - Study Force

The following comparison is presented for Couch, Inc. to the industry averages:
   Industry
   Couch, Inc.   Averages
   Current ratio   1.7   1.2
   Quick ratio   .6   .8
   Net sales to working capital   12.0   25.0
   Receivables turnover   4.0   7.6
   Inventory turnover   4.8   6.2
What conclusion can be drawn when comparing Couch's net sales to working capital to the industry?
A) Couch is generating less working capital for each $1.00 of sales than the industry.
B) Couch is earning less on its working capital than the industry.
C) Couch is utilizing its working capital more efficiently than the industry.
D) Couch is generating less sales for each $1.00 of working capital than the industry.

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