Q2 solve it

Question # 1. Khalid Company would like to compare its days' sales in receivables with that of a competitor, Ahmed Company. Both companies have had similar sales results in the past, but Ahmed Company has had better profe results Khalid Company suspects that one reason for the better profit resun that Ahmed Company did a better job of managing receivables Khalid Company uses a calendar year that ends on December 31, while Ahmed Company uses a hacal year that ends on July 31, Information related to sales and receivables of the two companies follows For Year Ended December 31, 20XX Khalid Company Net sales Receivables, less adowance for doubtful $2,340,000 165,000 accounts of $12.000 For Year Ended July 31, 20XX Ahmed Company Net sales Receivables, less allowance for doubtful accounts of $6,000 $ 2,405,000 90.000 Required a. Compute the days' sales in receivables for both companies (Use year-end gross receivables) (2 marks] Company Days' Sales in Receivables Ratio hp Required Compute the days' sales in receivables for both companies. (Use year-end gross receivables) (2 marks] Days' Sales in Receivables Ratio Company Khalid Ahmed b. Which company manages their receivables better? Explain [1 mark) 2. Individual transactions often have a significant impact on ratios. This problem will consider the direction of such an impact. (3 marks Use I for increase, D for decrease, and N for no change. hp 10 2. Individual transactions often have a significant impact on ratios. This problem will consider the direction of such an impact [3 mark Use I for increase, D for decrease, and N for no change. No Transaction Interest Coverage Ratio Debt Ratio Debt/ Equity Ratio Purchase of buildings financed by D 1 mortgage Sale of common stock. Repayment of long-term bank loan Conversion of bonds to common stock outstanding Declaration and payment of cash dividend e. Declaration and distribution of stock dividend. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). EVE BIUS Paragraph V Arial b. C d. 100t B www. 10 outstanding Declaration and payment of cash dividend e Declaration and distribution of stock dividend For the toolbar, press ALT F10 (PC) or ALT-IN-F10 (Mac) B S Paragraph V Arial M 5 TE X X 3 (0) d. O # 10pt I > +] E- E- > I. ST F EB *** O WORDS POWERED BY TINY