The financial statements of Hershey Foods are presented in Appendix B, following the financial statements for Tootsie

Question:

The financial statements of Hershey Foods are presented in Appendix B, following the financial statements for Tootsie Roll in Appendix A.

Instructions

(a) Based on the information contained in these financial statements, compute the following 2007 values for each company.

(1) Receivables turnover ratio. (For Tootsie Roll use “Net product sales.” Assume all sales were credit sales.)

(2) Average collection period for receivables.

(b) What conclusions concerning the management of accounts receivable can be drawn from these data?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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...