Refer to the financial statement information of Under Armour and Columbia Sportswear reproduced at the back of

Question:

Refer to the financial statement information of Under Armour and Columbia Sportswear reproduced at the back of this book.

Required

1. Calculate the accounts receivable turnover ratios for both companies for the most recent year. Assume all sales are on credit.

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 parts (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...