Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows: ($ in millions) Net Sales Beginning Accounts Receivable Ending Accounts Receivable Sun Health $2,730 $255 $242 Select Medical 3,040 454 393 Required: 1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. 1-b. Which company maintains a higher receivables turnover?
Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows: ($ in millions) Net Sales Beginning Accounts Receivable Ending Accounts Receivable Sun Health $2,730 $255 $242 Select Medical 3,040 454 393 Required: 1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. 1-b. Which company maintains a higher receivables turnover?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows:
| ($ in millions) | Net Sales | Beginning |
Ending Accounts Receivable |
|---|---|---|---|
| Sun Health | $2,730 | $255 | $242 |
| Select Medical | 3,040 | 454 | 393 |
Required:
1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical.
1-b. Which company maintains a higher receivables turnover?
Transcribed Image Text:Req la
Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. (Enter dollar amounts in
millions, and for denominators, to 1 decimal place.)
Sun Health
Select Medical
Req 1b
Sun Health
Select Medical
Choose Numerator:
Choose Numerator:
Receivables Turnover Ratio
T
Choose Denominator:
Average Collection Period
I
1
Choose Denominator:
Receivables Turnover Ratio
0 times
0 times
Average Collection Period
0 days
0 days
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education