Presented here are the average days to collect accounts receivable for four companies in different industries. The
Question:
Presented here are the average days to collect accounts receivable for four companies in different industries. The data are for 2017.
Required
Write a brief memorandum that provides possible answers to each of the following questions:
a. Why would a company that manufactures and sells airplanes (Boeing) and a company that manufactures and sells automobiles (Ford) collect their accounts receivables in such relatively short times?
b. Why would a company that sells furniture (Haverty) collect its receivables so much quicker than a company that sells toothpaste and soap (Procter & Gamble)?
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a The rather short collection period for Boeing may surprise many students They may suggest that Boe...View the full answer
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Related Book For 
Introductory Financial Accounting For Business
ISBN: 9781260575309
2nd Edition
Authors: Thomas Edmonds, Christopher Edmonds, Mark Edmonds, Jennifer Edmonds, Philip Olds
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