Below are amounts for two companies: 1. For each company, calculate the accounts receivable average collection period

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Below are amounts for two companies:

Beginning Ending Accounts Receivable (net) $2,000 2,500 Net Sales Accounts Receivable (net) Company 1 Company 2 $2,300 3

1. For each company, calculate the accounts receivable average collection period

Accounts Receivable Average Collection Period Company 1 Company 2

2. Which company appears more efficient in collecting cash from sales?
Company 1
Company 2

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Financial Reporting And Analysis

ISBN: 9781260247848

8th Edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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Question Posted: Dec 04, 2017 09:16 AM

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Below are amounts for two companies: 1. For each company, calculate the accounts receivable average collection period

Question:

Beginning Ending Accounts Receivable (net) $2,000 2,500 Net Sales Accounts Receivable (net) Company 1 Company 2 $2,300 3,200 $23,000 75,000 Accounts Receivable Average Collection Period Company 1 Company 2

Step by Step Answer:

Accounts Receivable Turnover Net credit sales Average Accounts Receivable Accounts ...View the full answer

Financial Reporting And Analysis

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