Mathis Incorporated and Hashey Companies are two of the largest and most successful toymakers in the world, in terms of the products they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Required: 2018 $ 5,656 1,158 21 1,137 Mathis 2017 2016 $ 5,131 $ 5,718 764 24 740 890 25 865 2018 $ 3,902 982 30 952 Hashey 2017 $3,768 1,062 32 1,030 1. Calculate the receivables turnover ratios and days to collect for Mathis and Hashey for 2018 and 2017. TIP: In your calculations, use average Accounts Receivable, Net of Allowance. 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 $ 3,822 634 31 603
Mathis Incorporated and Hashey Companies are two of the largest and most successful toymakers in the world, in terms of the products they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Required: 2018 $ 5,656 1,158 21 1,137 Mathis 2017 2016 $ 5,131 $ 5,718 764 24 740 890 25 865 2018 $ 3,902 982 30 952 Hashey 2017 $3,768 1,062 32 1,030 1. Calculate the receivables turnover ratios and days to collect for Mathis and Hashey for 2018 and 2017. TIP: In your calculations, use average Accounts Receivable, Net of Allowance. 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 $ 3,822 634 31 603
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Mathis Incorporated and Hashey Companies are two of the largest and most successful toymakers in the world, in terms of the
products they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the
following information reported in their annual reports (amounts in millions).
Fiscal Year Ended:
Net Sales
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
Required:
Req 1
Req 2A
1. Calculate the receivables turnover ratios and days to collect for Mathis and Hashey for 2018 and 2017.
TIP: In your calculations, use average Accounts Receivable, Net of Allowance.
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?
Complete this question by entering your answers in the tabs below.
Req 2B
Receivables Turnover Ratio
Days to Collect
2018
$ 5,656
1,158
21
1,137
Mathis
2018
Mathis
2017
$ 5,131
6.0
764
24
740
Hashey
Calculate the receivables turnover ratios and days to collect for Mathis and Hashey for 2018 and 2017.
TIP: In your calculations, use average Accounts Receivable, Net of Allowance. (Use 365 days in a year. Do not round
intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final
rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.)
< Req 1
2016
$ 5,718
890
25
865
Mathis
2017
6.4
2018
$ 3,902
982
30
952
Hashey
Hashey
2017
$ 3,768
1,062
32
1,030
Req 2A >
2016
$ 3,822
634
31
603
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Transcribed Image Text:Mathis Incorporated and Hashey Companies are two of the largest and most successful toymakers in the world, in terms of the
products they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the
following information reported in their annual reports (amounts in millions).
Fiscal Year Ended:
Net Sales
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
Required:
Req 1
Req 2A
1. Calculate the receivables turnover ratios and days to collect for Mathis and Hashey for 2018 and 2017.
TIP: In your calculations, use average Accounts Receivable, Net of Allowance.
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?
Complete this question by entering your answers in the tabs below.
Req 2B
Receivables Turnover Ratio
Days to Collect
2018
$ 5,656
1,158
21
1,137
Mathis
2018
Mathis
2017
$ 5,131
6.0
764
24
740
Hashey
Calculate the receivables turnover ratios and days to collect for Mathis and Hashey for 2018 and 2017.
TIP: In your calculations, use average Accounts Receivable, Net of Allowance. (Use 365 days in a year. Do not round
intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final
rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.)
< Req 1
2016
$ 5,718
890
25
865
Mathis
2017
6.4
2018
$ 3,902
982
30
952
Hashey
Hashey
2017
$ 3,768
1,062
32
1,030
Req 2A >
2016
$ 3,822
634
31
603
Show less ▲
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