Fizzy Sodas and Hayes Companies are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales 2018 $ 40,630 4,410 620 3,790 Fizzy Sodas 2017 $ 45,120 4,710 610 4,100 2016 $ 47,640 4,930 600 4,330 2018 $82,416 8,240 100 8,140 Hayes Companies 2017 $82,945 8,150 130 8,020 Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Required: 1. Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies for 2018 and 2017. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? 2016 $ 71,470 7,770 140 7,630
Fizzy Sodas and Hayes Companies are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales 2018 $ 40,630 4,410 620 3,790 Fizzy Sodas 2017 $ 45,120 4,710 610 4,100 2016 $ 47,640 4,930 600 4,330 2018 $82,416 8,240 100 8,140 Hayes Companies 2017 $82,945 8,150 130 8,020 Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Required: 1. Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies for 2018 and 2017. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? 2016 $ 71,470 7,770 140 7,630
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...
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Fizzy Sodas and Hayes Companies are two of the largest and most successful beverage companies in the world in terms of the
products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the
following rounded amounts reported in their annual reports (amounts in millions).
Fiscal Year Ended:
Net Sales
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
2018
$ 40,630
4,410
620
3,790
Fizzy Sodas
2017
$ 45,120
4,710
610
4,100
2016
$ 47,640
4,930
600
4,330
2018
$ 82,416
8,240
100
8,140
Hayes Companies
2017
$82,945
8,150
130
8,020
Required:
1. Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies for 2018 and 2017.
2-a. Which of the companies was quicker to convert its receivables into cash in 2018?
2-b. Which of the companies was quicker to convert its receivables into cash in 2017?
2016
$ 71,470
7,770
140
7,630](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F45ed2514-fed8-45a2-ab9a-32eaa1af202f%2Fa3edc66e-a39b-499b-a108-e8a3e0a66010%2Fa9b9rb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
Fizzy Sodas and Hayes Companies are two of the largest and most successful beverage companies in the world in terms of the
products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the
following rounded amounts reported in their annual reports (amounts in millions).
Fiscal Year Ended:
Net Sales
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
2018
$ 40,630
4,410
620
3,790
Fizzy Sodas
2017
$ 45,120
4,710
610
4,100
2016
$ 47,640
4,930
600
4,330
2018
$ 82,416
8,240
100
8,140
Hayes Companies
2017
$82,945
8,150
130
8,020
Required:
1. Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies for 2018 and 2017.
2-a. Which of the companies was quicker to convert its receivables into cash in 2018?
2-b. Which of the companies was quicker to convert its receivables into cash in 2017?
2016
$ 71,470
7,770
140
7,630
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