Comparing Two Companies in the Same Industry: Kelloggs and General Mills Refer to the financial statement information

Question:

Comparing Two Companies in the Same Industry: Kellogg’s and General Mills Refer to the financial statement information of Kellogg’s and General Mills reproduced at the end of this book.

Required

1. Calculate the accounts receivable turnover ratios for both companies for the most recent year.

2. Calculate the average length of time it takes each company to collect its accounts receivable.

3. Compare the two companies on the basis of your calculations in (1) and (2).

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...