Accounts Receivable Turnover and Average Collection Period The Forrester Corporation disclosed the following financial information (in millions) in its recent annual report: Net sales Beginning accounts receivable (net) Ending accounts receivable (net) Year 1 Year 2 $33,548 $40,831 8,182 7,762 7,762 7,556 a. Calculate the accounts receivable turnover ratio for both years. b. Calculate the average collection period for both years. Notes: 1. Round all answers to one decimal place. 2. Use rounded answer from part a. to compute the average collection period.
Accounts Receivable Turnover and Average Collection Period The Forrester Corporation disclosed the following financial information (in millions) in its recent annual report: Net sales Beginning accounts receivable (net) Ending accounts receivable (net) Year 1 Year 2 $33,548 $40,831 8,182 7,762 7,762 7,556 a. Calculate the accounts receivable turnover ratio for both years. b. Calculate the average collection period for both years. Notes: 1. Round all answers to one decimal place. 2. Use rounded answer from part a. to compute the average collection period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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