The accounts receivable turnover ratio will vary across companies, depending upon the nature of the company's operations.

Question:

The accounts receivable turnover ratio will vary across companies, depending upon the nature of the company's operations. For example, an accounts receivable turnover of 6 for an Internet Services Provider is unacceptable but might be excellent for a manufacturer of specialty milling equipment. A list of well-known companies follows.

1. Using the PricewaterhouseCoopers Web site, edgarscan.pwcglobal.com, look up each company by entering its name. Click on each company's name and then scroll down to the bottom of the page to "Set Preferences." Select "Receivables Turnover" in the Ratios list. Then click "Save Preferences."
2. Categorize each of the preceding companies as to whether its turnover ratio is above or below 15.
3. Based upon (2), identify a characteristic of companies with accounts receivable turnover ratios above15.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...