Consider the following financial information for a recent year for two fairly similar companies:

Required:
(a) Compute each company€™s accounts receivable turnover ratio and age of receivables.
(b) Which of these companies is better at managing its accounts receivable? Explain.

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Aliza Corp. Breta Corp. Cash sales Net credit sales Total sales Average accounts 20,000 40,000 60,000 $100,000 $100,000 80,000 receivable during the year 20,000 5,000