You are considering a $100,000 investment in one of two publicly traded companies in the same industry.

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You are considering a $100,000 investment in one of two publicly traded companies in the same industry. Review the last three annual financial statements (same fiscal year) for two publicly traded companies in the same industry. Based on the information obtained, complete the following.

A. Compute the accounts receivable turnover ratio (round all answers to two decimal places).

B. Compute the number of days’ sales in receivables ratio for both companies for the two most current years (round all answers to two decimal places).

C. Describe and interpret the outcomes, stating which company you would invest in and why.

D. What information is missing that could help you make a more informed decision?

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Related Book For  book-img-for-question

Principles Of Accounting Volume 1 Financial Accounting

ISBN: 9781947172685

1st Edition

Authors: Patty Graybeal, Mitchell Franklin, Dixon Cooper

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