Question

The following data were taken from Hershey Foods Corporation’s 2010 annual report. All dollar amounts are in thousands.


Required
a. Compute Hershey’s accounts receivable turnover ratios for 2010 and 2009.
b. Compute Hershey’s average days to collect accounts receivables for 2010 and 2009.
c. Based on the ratios computed in Requirements a and b, did Hershey’s performance get better or worse from 2009 to 2010?
d. In 2010 Hershey issued long-term notes payable with an interest rate of 4.2 percent. Assume it took Hershey 30 days to collect its receivables. Using an interest rate of 4.2 percent, calculate how much it cost Hershey’s to finance its receivables for 30 days in2010.


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  • CreatedOctober 26, 2013
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