PA$8-5($Algo$)$ Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect $[$LO $8-4]$

Cola Incorporated and Soda Company are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports $($amounts in millions$).$

$\backslash$table$[[$Fiscal Year Ended:,Cola Incorporated,Soda Company$],[$Net Sales,$ $2018,$$ $2017,2016,2018,2017,2016],[$Accounts Receivable,$ $45,450,$$ $50,360,$$ $50,580,$$ $92,610,$$ $93,070,$$ $75,860],[$Allowance for Doubtful Accounts,$4,680680,5,010,5,230,8,740,8,640,8,250],[$Accounts Receivable, Net of Allowance,$4,000,6704,340,660,1008,640,130,140]]$

Required:

Calculate the receivables turnover ratios and days to collect for Cola Incorporated and Soda Company for $2018$ and $2017.$

$2-$a$.$ Which of the companies was quicker to convert its receivables into cash in $2018?$

$2-$b$.$ Which of the companies was quicker to convert its receivables into cash in $2017?$

PA$8-5($Algo$)$ Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect $[$LO $8-4]$

Cola Incorporated and Soda Company are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports $($amounts in millions$).$

$\backslash$table$[[$Fiscal Year Ended:,Cola Incorporated,Soda Company$],[$Net Sales,$ $2018,$$ $2017,2016,2018,2017,2016],[$Accounts Receivable,$ $45,450,$$ $50,360,$$ $50,580,$$ $92,610,$$ $93,070,$$ $75,860],[$Allowance for Doubtful Accounts,$4,680680,5,010,5,230,8,740,8,640,8,250],[$Accounts Receivable, Net of Allowance,$4,000,6704,340,660,1008,640,130,140]]$

Required:

Calculate the receivables turnover ratios and days to collect for Cola Incorporated and Soda Company for $2018$ and $2017.$

$2-$a$.$ Which of the companies was quicker to convert its receivables into cash in $2018?$

$2-$b$.$ Which of the companies was quicker to convert its receivables into cash in $2017?$

PA$8-5($Algo$)$ Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect $[$LO $8-4]$

Cola Incorporated and Soda Company are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports $($amounts in millions$).$

$\backslash$table$[[$Fiscal Year Ended:,Cola Incorporated,Soda Company$],[$Net Sales,$ $2018,$$ $2017,2016,2018,2017,2016],[$Accounts Receivable,$ $45,450,$$ $50,360,$$ $50,580,$$ $92,610,$$ $93,070,$$ $75,860],[$Allowance for Doubtful Accounts,$4,680680,5,010,5,230,8,740,8,640,8,250],[$Accounts Receivable, Net of Allowance,$4,000,6704,340,660,1008,640,130,140]]$

Required:

Calculate the receivables turnover ratios and days to collect for Cola Incorporated and Soda Company for $2018$ and $2017.$

$2-$a$.$ Which of the companies was quicker to convert its receivables into cash in $2018?$

$2-$b$.$ Which of the companies was quicker to convert its receivables into cash in $2017?$

PA$8-5($Algo$)$ Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect $[$LO $8-4]$

Cola Incorporated and Soda Company are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports $($amounts in millions$).$

$\backslash$table$[[$Fiscal Year Ended:,Cola Incorporated,Soda Company$],[$Net Sales,$ $2018,$$ $2017,2016,2018,2017,2016],[$Accounts Receivable,$ $45,450,$$ $50,360,$$ $50,580,$$ $92,610,$$ $93,070,$$ $75,860],[$Allowance for Doubtful Accounts,$4,680680,5,010,5,230,8,740,8,640,8,250],[$Accounts Receivable, Net of Allowance,$4,000,6704,340,660,1008,640,130,140]]$

Required:

Calculate the receivables turnover ratios and days to collect for Cola Incorporated and Soda Company for $2018$ and $2017.$

$2-$a$.$ Which of the companies was quicker to convert its receivables into cash in $2018?$

$2-$b$.$ Which of the companies was quicker to convert its receivables into cash in $2017?$