Which company had the highest number of days of receivables for the year 20X1?

Mary Gonzales is evaluating companies in the office supply industry and has compiled
the following information:
20X1 20X2
Company Credit Sales ($)
Average Receivables
Balance ($) Credit Sales ($)
Average Receivables
Balance ($)
A 5.0 million 1.0 million 6.0 million 1.2 million
B 3.0 million 1.2 million 4.0 million 1.5 million
C 2.5 million 0.8 million 3.0 million 1.0 million
D 0.5 million 0.1 million 0.6 million 0.2 million
Industry 25.0 million 5.0 million 28.0 million 5.4 million
A. Company A.
B. Company B.
C. Company C.

Ans: B. Company B.