The following are summary financial data for Parker Enterprises, Inc., and Boulder, Inc., for three recent years:
Question:
The following are summary financial data for Parker Enterprises, Inc., and Boulder, Inc., for three recent years:
1. Using the above data, compute the accounts receivable turnover and average collection period for each company for Years 2 and 3.
2. Which company appears to have the better credit managementpolicy?
Transcribed Image Text:
Year 3 Year 2 Year 1 Net sales (in millions) Parker Enterprises, Inc.anS 3,700 17,825 3,875 3,882 15,242 Boulder, Inc. 16,549 Net accounts receivable (in millions: Parker Enterprises, Inc. Boulder, Inc. w1,400 5,525 1,800 5,800 1,725 6,205
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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