Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable $ 1,795 6,066 609 WalCo TarMart CostGet 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? Required 1 Required 2 Complete this question by entering your answers in the tabs below. WalCo TarMart CostGet Ending Accounts Receivable $ 2,742 6,594 645 Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. Note: Rounded to one decimal place. Enter your dollar answers in millions. WalCo TarMart CostGet Choose Numerator Net Sales $ 320,427 65,878 66,963 Choose Numerator Receivables Turnover Ratio Choose Denominator Average Collection Period Choose Denominator < Required 1 Receivables turnover ratio times times times = Average collection period days days days Required 2 >
Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable $ 1,795 6,066 609 WalCo TarMart CostGet 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? Required 1 Required 2 Complete this question by entering your answers in the tabs below. WalCo TarMart CostGet Ending Accounts Receivable $ 2,742 6,594 645 Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. Note: Rounded to one decimal place. Enter your dollar answers in millions. WalCo TarMart CostGet Choose Numerator Net Sales $ 320,427 65,878 66,963 Choose Numerator Receivables Turnover Ratio Choose Denominator Average Collection Period Choose Denominator < Required 1 Receivables turnover ratio times times times = Average collection period days days days Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Below are amounts (in millions) from three companies' annual reports.
Beginning Accounts
Receivable
$ 1,795
6,066
609
WalCo
TarMart
CostGet
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?
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
WalCo
TarMart
CostGet
Ending Accounts
Receivable
$ 2,742
6,594
645
Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet.
Note: Rounded to one decimal place. Enter your dollar answers in millions.
WalCo
TarMart
CostGet
Choose Numerator
Net Sales
$ 320,427
65,878
66,963
Choose Numerator
Receivables Turnover Ratio
Choose Denominator
Average Collection Period
Choose Denominator
< Required 1
=
Required 2 >
Receivables turnover ratio
times
times
times
Average collection period
days
days
days
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