Accounts Receivable Turnover and Average Collection Period The Forrester Corporation disclosed the following financial information (in millions) in its recent annual report: Previous Year Current Year Net Sales $157,105 $171,669 Beginning Accounts Receivable (net) 11,899 11,369 Ending Accounts Receivable (net) 11,369 11,544 Calculate the accounts receivable turnover ratio for both years. (Round your answer 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? Previous Year Current Year a. Accounts receivable turnover Answer Answer b. Average collection period Answer Answer c. The company's receivable management Answer
Accounts Receivable Turnover and Average Collection Period The Forrester Corporation disclosed the following financial information (in millions) in its recent annual report: Previous Year Current Year Net Sales $157,105 $171,669 Beginning Accounts Receivable (net) 11,899 11,369 Ending Accounts Receivable (net) 11,369 11,544 Calculate the accounts receivable turnover ratio for both years. (Round your answer 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? Previous Year Current Year a. Accounts receivable turnover Answer Answer b. Average collection period Answer Answer c. The company's receivable management Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| Previous Year | Current Year | |
|---|---|---|
| Net Sales | $157,105 | $171,669 |
| Beginning Accounts Receivable (net) | 11,899 | 11,369 |
| Ending Accounts Receivable (net) | 11,369 | 11,544 |
- Calculate the accounts receivable turnover ratio for both years. (Round your answer 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?
| Previous Year | Current Year | |
|---|---|---|
| a. Accounts receivable turnover | Answer | Answer |
| b. Average collection period | Answer | Answer |
| c. The company's receivable management | Answer |
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