Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable $1,815 6,166 629 WalCo TarMart CostGet Ending Accounts Receivable $2,762 6,694 665 Net Sales $322,427 67,878 68,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. 2. Which company appears most efficient in collecting cash from sales?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Below are amounts (in millions) from three companies' annual reports.
Beginning
Accounts
Receivable
$1,815
6,166
629
WalCo
TarMart
CostGet
Ending Accounts
Receivable
$2,762
6,694
665
Net Sales
$322,427
67,878
68,963
Required:
1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet.
2. Which company appears most efficient in collecting cash from sales?
Transcribed Image Text:Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable $1,815 6,166 629 WalCo TarMart CostGet Ending Accounts Receivable $2,762 6,694 665 Net Sales $322,427 67,878 68,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. 2. Which company appears most efficient in collecting cash from sales?
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