Question

Tadoussac Inc. and Sturgis Ltd. are plumbing supply companies operating in eastern Canada. Both companies are looking for investment to help with their expansion plans. You work for a small venture capital firm that is considering investing in one of the companies. You've been asked to look at the accounts receivable of the two and provide a report. You have the following information


Required:
Calculate the accounts receivable turnover ratio and the average collection period for 2017 and 2018. Provide an interpretation of the results and provide some possible explanations for any differences you find. What additional information would you want to understand any differences?


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  • CreatedFebruary 26, 2015
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