Accounts receivable turnover and days' sales in receivablesOBJ.8The Campbell Soup Company manufactures and markets food products throughout theworld. The following sales and receivable data (in millions) were reported by CampbellSoup for two recent years:SalesAccounts receivableYear 2$8,685805Year 1$7,890616Assume that the accounts receivable were $638 million at the beginning of Year 1.a.Compute the accounts receivable turnover for Year 2 and Year 1. Round average ac-counts receivable to one decimal place and accounts receivable turnover to two decimalplaces.b.Compute the days' sales in receivables for Year 2 and Year 1. Use 365 days and roundto one decimal place.What conclusions can be drawn from these analyses regarding Campbell'sefficiency in collecting receivables? EX 9-27Accounts receivable turnover and days' sales in receivablesOL ccomupThe Campbell Soup Company manufactures and markets food products throughout the12.22deso world. The following sales and receivable data (in millions) were reported by CampbenIGU OOBJ. 8Soup for two recent years:nucoscopie (ouc corz): CSalesEALRLDSCconurYear 2Year 1$8,685068'$616Accounts receivable805FO'000डेश fAssume that the accounts receivable were $638 million at the beginning of Year 1.GUILAa. Compute the accounts receivable turnover for Year 2 and Year 1. Round average ac-counts receivable to one decimal place and accounts receivable turnover to two decimalrCcom o IIplaces.b. Compute the days' sales in receivables for Year 2 and Year 1. Use 365 days and roundto one decimal place.Donprim yocomireWhat conclusions can be drawn from these analyses regarding Campbell'sc.efficiency in collecting receivables?OBJ. 8

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FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Accounts receivable turnover and days' sales in receivables OBJ.8 The Campbell Soup Company manufactures and markets food products throughout the world. The following sales and receivable data (in millions) were reported by Campbell Soup for two recent years: Sales Accounts receivable Year 2 $8,685 805 Year 1 $7,890 616 Assume that the accounts receivable were $638 million at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round average ac- counts receivable to one decimal place and accounts receivable turnover to two decimal places. b. Compute the days' sales in receivables for Year 2 and Year 1. Use 365 days and round to one decimal place. What conclusions can be drawn from these analyses regarding Campbell's efficiency in collecting receivables?

EX 9-27
Accounts receivable turnover and days' sales in receivables
OL ccomup
The Campbell Soup Company manufactures and markets food products throughout the
12.22deso world. The following sales and receivable data (in millions) were reported by Campben
IGU O
OBJ. 8
Soup for two recent years:
nucoscopie (ouc corz): C
Sales
EAL
RLD
SCconur
Year 2
Year 1
$8,685
068'$
616
Accounts receivable
805
FO'000
डेश f
Assume that the accounts receivable were $638 million at the beginning of Year 1.
GUILA
a. Compute the accounts receivable turnover for Year 2 and Year 1. Round average ac-
counts receivable to one decimal place and accounts receivable turnover to two decimal
rCcom o II
places.
b. Compute the days' sales in receivables for Year 2 and Year 1. Use 365 days and round
to one decimal place.
Donprim yocomire
What conclusions can be drawn from these analyses regarding Campbell's
c.
efficiency in collecting receivables?
OBJ. 8

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