Below are amounts (in millions) from three companies' annual reports. Ending Accounts Receivable $2,662 WalCo TarMart CostGet Beginning Accounts Receivable $1,715 5,666 529 6,194 565 Net Sales $312,427 57,878 58,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Subject: acounting 

Below are amounts (in millions) from three companies' annual reports.
Ending
Accounts
WalCo
TarMart.
CostGet
WalCo $
TarMart
$
CostGet $
Beginning
Accounts
Receivable
$1,715
5,666
529
WalCo
TarMart
CostGet
Required:
1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round
intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnove
ratio" answers to one decimal place.)
Net sales
Receivable
$2,662
6,194
565
365
312,427
57,878
58,963
Net Sales
$312,427
57,878
58,963
305
365
365
Receivables Turnover Ratio
$
$
$
Average accounts receivable
Average Collection Period
2,188 5
5,930.0
547.0
Receivables turnover ratio
142 8
98
107 8
Receivables turnover ratio
142 8 times
9.8 times
107 8 times
Average collection period
26 days
37.2 days
3.4 days
Transcribed Image Text:Below are amounts (in millions) from three companies' annual reports. Ending Accounts WalCo TarMart. CostGet WalCo $ TarMart $ CostGet $ Beginning Accounts Receivable $1,715 5,666 529 WalCo TarMart CostGet Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnove ratio" answers to one decimal place.) Net sales Receivable $2,662 6,194 565 365 312,427 57,878 58,963 Net Sales $312,427 57,878 58,963 305 365 365 Receivables Turnover Ratio $ $ $ Average accounts receivable Average Collection Period 2,188 5 5,930.0 547.0 Receivables turnover ratio 142 8 98 107 8 Receivables turnover ratio 142 8 times 9.8 times 107 8 times Average collection period 26 days 37.2 days 3.4 days
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Accounting Equation
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education