Accounts Receivable Turnover and Average Collection Period The Outback Corporation disclosed the following financial information (in millions) in its recent annual report: 2018 2019 Net Sales $72,500 $83,750 Beginning Accounts Receivable (net) 3,896 4,100 Ending Accounts Receivable (net) 4,100 3,596 Calculate the accounts receivable turnover ratio for both years. (Round to two decimal points.) Calculate the average collection period for both years. (Use 365 days for calculation. Round to the nearest whole number.) Is the company’s accounts receivable management improving or deteriorating? 2018 2019 a. Accounts receivable turnover Answer Answer b. Average collection period Answer Answer c. The company's receivable management AnswerImprovedDeteriorated
Accounts Receivable Turnover and Average Collection Period The Outback Corporation disclosed the following financial information (in millions) in its recent annual report: 2018 2019 Net Sales $72,500 $83,750 Beginning Accounts Receivable (net) 3,896 4,100 Ending Accounts Receivable (net) 4,100 3,596 Calculate the accounts receivable turnover ratio for both years. (Round to two decimal points.) Calculate the average collection period for both years. (Use 365 days for calculation. Round to the nearest whole number.) Is the company’s accounts receivable management improving or deteriorating? 2018 2019 a. Accounts receivable turnover Answer Answer b. Average collection period Answer Answer c. The company's receivable management AnswerImprovedDeteriorated
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The Outback Corporation disclosed the following financial information (in millions) in its recent annual report:
| 2018 | 2019 | |
|---|---|---|
| Net Sales | $72,500 | $83,750 |
| Beginning Accounts Receivable (net) | 3,896 | 4,100 |
| Ending Accounts Receivable (net) | 4,100 | 3,596 |
- Calculate the accounts receivable turnover ratio for both years. (Round to two decimal points.)
- Calculate the average collection period for both years. (Use 365 days for calculation. Round to the nearest whole number.)
- Is the company’s
accounts receivable management improving or deteriorating?
| 2018 | 2019 | |
|---|---|---|
| a. Accounts receivable turnover | Answer | Answer |
| b. Average collection period | Answer | Answer |
| c. The company's receivable management | AnswerImprovedDeteriorated |
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