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1 ok 1 Fint PA8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect [LO 8-4] Patterson Beverage Company and Kapoor Cola Corporation 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). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Req 1 Req 2A 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? Complete this question by entering your answers in the tabs below. Req 2B. Receivables Turnover Ratio Days to collect Required: 1. Calculate the receivables turnover ratios and days to collect for Patterson Beverage Company and Kapoor Cola Corporation for 2018 and 2017. Patterson Beverage Company 2018 $36,330 2018 Patterson Beverage Company 2017 8.2 44.5 4,170 560 3,610 Kapoor Cola Corporation Req 1 Calculate the receivables turnover ratios and days to collect for Patterson Beverage Company and Kapoor Cola Corporation for 2018 and 2017. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) $ 40,270 4,430 550 3,880 9.6 38.1 Patterson Beverage Company 2017 9.2 39.9 Kapoor Cola Corporation 2016 $ 44,880 4,630 540 4,090 Req 2A > Kapoor Cola Corporation 2017 $ 73,600 7,670 130 7,540 9.8 37.2 2018 $72,960 7,760 100 7,660 2016 $67,330 7,320 140 7,180

1 ok 1 Fint PA8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect [LO 8-4] Patterson Beverage Company and Kapoor Cola Corporation 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). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Req 1 Req 2A 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? Complete this question by entering your answers in the tabs below. Req 2B. Receivables Turnover Ratio Days to collect Required: 1. Calculate the receivables turnover ratios and days to collect for Patterson Beverage Company and Kapoor Cola Corporation for 2018 and 2017. Patterson Beverage Company 2018 $36,330 2018 Patterson Beverage Company 2017 8.2 44.5 4,170 560 3,610 Kapoor Cola Corporation Req 1 Calculate the receivables turnover ratios and days to collect for Patterson Beverage Company and Kapoor Cola Corporation for 2018 and 2017. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) $ 40,270 4,430 550 3,880 9.6 38.1 Patterson Beverage Company 2017 9.2 39.9 Kapoor Cola Corporation 2016 $ 44,880 4,630 540 4,090 Req 2A > Kapoor Cola Corporation 2017 $ 73,600 7,670 130 7,540 9.8 37.2 2018 $72,960 7,760 100 7,660 2016 $67,330 7,320 140 7,180

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter7: Introduction To Financial Statement Analysis
Section: Chapter Questions
Problem 16E
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### Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect Patterson Beverage Company and Kapoor Cola Corporation 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 (in millions). #### Financial Data | Fiscal Year Ended | Patterson Beverage Company | Kapoor Cola Corporation | |-------------------|----------------------------|-------------------------| | | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | | Net Sales | $36,330 | $40,270 | $44,880 | $72,960 | $73,600 | $67,330 | | Accounts Receivable | 4,170 | 4,430 | 4,630 | 7,760 | 7,670 | 7,320 | | Allowance for Doubtful Accounts | 560 | 550 | 540 | 100 | 130 | 140 | | Accounts Receivable, Net of Allowance | 3,610 | 3,880 | 4,090 | 7,660 | 7,540 | 7,180 | ### Required 1. **Calculate the receivables turnover ratios and days to collect for Patterson Beverage Company and Kapoor Cola Corporation for 2018 and 2017.** 2. **Determine which company was quicker to convert its receivables into cash in 2018.** 3. **Determine which company was quicker to convert its receivables into cash in 2017.** ### Instructions Complete the calculations and enter your answers in the tabs below. #### Calculations Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use the final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation. #### Example Calculation and Summary Here's a summary of the calculated Receivables Turnover Ratios and Days to Collect for both companies: | | 2018 | | 2017 | | |----------------------|---------------------------|-------------------------|--------------------------|-------------------------| | | Patterson Beverage Company | Kapoor Cola Corporation | Patterson Beverage Company |
Transcribed Image Text:### Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect Patterson Beverage Company and Kapoor Cola Corporation 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 (in millions). #### Financial Data | Fiscal Year Ended | Patterson Beverage Company | Kapoor Cola Corporation | |-------------------|----------------------------|-------------------------| | | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | | Net Sales | $36,330 | $40,270 | $44,880 | $72,960 | $73,600 | $67,330 | | Accounts Receivable | 4,170 | 4,430 | 4,630 | 7,760 | 7,670 | 7,320 | | Allowance for Doubtful Accounts | 560 | 550 | 540 | 100 | 130 | 140 | | Accounts Receivable, Net of Allowance | 3,610 | 3,880 | 4,090 | 7,660 | 7,540 | 7,180 | ### Required 1. **Calculate the receivables turnover ratios and days to collect for Patterson Beverage Company and Kapoor Cola Corporation for 2018 and 2017.** 2. **Determine which company was quicker to convert its receivables into cash in 2018.** 3. **Determine which company was quicker to convert its receivables into cash in 2017.** ### Instructions Complete the calculations and enter your answers in the tabs below. #### Calculations Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use the final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation. #### Example Calculation and Summary Here's a summary of the calculated Receivables Turnover Ratios and Days to Collect for both companies: | | 2018 | | 2017 | | |----------------------|---------------------------|-------------------------|--------------------------|-------------------------| | | Patterson Beverage Company | Kapoor Cola Corporation | Patterson Beverage Company |
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