Analyz JReceivables The following information was taken from the annual reports of two high- end jewelry retailers: Net accounts receivable, 2010 Net accounts receivable, 2009 Net revenues 2010 Net revenues 2009 Company A P 584,000 505,000 2,425,000 2,200,000 Company B P 460,000 398,000 2,195,000 1,500,000 Required: a. Calculate the 2010 receivables turnover ratio and days-in-receivables turnover ratio for both companies. b. Compare the two companies. Which one is more efficient with their receivables?

Analyz JReceivables The following information was taken from the annual reports of two high- end jewelry retailers: Net accounts receivable, 2010 Net accounts receivable, 2009 Net revenues 2010 Net revenues 2009 Company A P 584,000 505,000 2,425,000 2,200,000 Company B P 460,000 398,000 2,195,000 1,500,000 Required: a. Calculate the 2010 receivables turnover ratio and days-in-receivables turnover ratio for both companies. b. Compare the two companies. Which one is more efficient with their receivables?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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heridan Company had net credit sales during the year of $1047750 and cost of goods sold of $484000. The balance in accounts receivable at the beginning of the year was $110400 and at the end of the year was $143600. What was the accounts receivable turnover?
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