Following are the average accounts receivable and net sales reported recently by two large beverage companies (dollar
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Following are the average accounts receivable and net sales reported recently by two large beverage companies (dollar amounts are stated in millions):
a. Compute the accounts receivable turnover rate for each company (round your results to one decimal place).
b. Compute the average number of days that it takes for each company to collect its accounts receivable (round your results to the nearest whole day).
c. Based upon your computations in a and b , which company’s accounts receivable appear to be most liquid? Defend your answer.
Accounts ReceivableAccounts 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...
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Related Book For
Financial Accounting
ISBN: 978-0077862381
16th edition
Authors: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
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