Days' sales in receivables measures the return on average receivables

Too many retailers, even big ones, fail to clearly define their target markets and positions

Indicate whether the statement is true or false

John Davis has a debt ratio of 0.25, which tells us that John

A) is insolvent since the ratio is less than 1.0. B) could have $10,000 in total assets and $7,500 in net worth. C) has 25% of his income allocated to reducing debt. D) might have $2,500 in liquid assets and $10,000 in current debts.