Question: Presented here are the average days to collect accounts receivable

Presented here are the average days to collect accounts receivable for four companies in different industries. The data are for 2010.

Required
Write a brief memorandum that provides possible answers to each of the following questions:
a. Why would a company that manufactures and sells airplanes (Boeing) and a company that manufacturers and sells automobiles (Ford) collect their accounts receivables in such relatively short times?
b. Why would a company that sells expensive jewelry (Zales) collect its receivables so much quicker than a company that sells toothpaste and soap (Procter & Gamble)?


View Solution:


Sale on SolutionInn
Sales0
Views104
Comments
  • CreatedOctober 26, 2013
  • Files Included
Post your question
5000