esFizzy Sodas and Hayes Companies are two of the largest and most successful beverage companies in the world in terms of theproducts that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider thefollowing rounded amounts reported in their annual reports (amounts in millions).Fiscal Year Ended:Net SalesAccounts ReceivableAllowance for Doubtful AccountsAccounts Receivable, Net of Allowance2018$ 40,6304,4106203,790Fizzy Sodas2017$ 45,1204,7106104,1002016$ 47,6404,9306004,3302018$ 82,4168,2401008,140Hayes Companies2017$82,9458,1501308,020Required:1. Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies for 2018 and 2017.2-a. Which of the companies was quicker to convert its receivables into cash in 2018?2-b. Which of the companies was quicker to convert its receivables into cash in 2017?2016$ 71,4707,7701407,630

The receivables turnover ratio is used to measure how efficiently a company manages its accounts…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Nicholas Company had net sales on account of $6,570,000 during 1998. The beginning and ending accounts receivable were $475,000 and 535,000 respectively. Compute the accounts receivable turnover ratio.
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