Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable Ending Accounts Receivable Net
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Question:
Below are amounts (in millions) from three companies' annual reports.
Beginning Accounts Receivable | Ending Accounts Receivable | Net Sales | |
---|---|---|---|
WalCo | $1,745 | $2,692 | $315,427 |
TarMart | 5,816 | 6,344 | 60,878 |
CostGet | 559 | 595 | 61,963 |
Required:
1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet.
2. Which company appears most efficient in collecting cash from sales?
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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