Patterson Beverage Company and Kapoor Cola Corporation 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 Patterson Beverage Company 2017 2018 $36,330 4,170 568 3,618 $ 40,270 4,430 550 3,880 2016 $ 44,880 4,630 540 4,090 Kapoor Cola Corporation 2017 $ 73,600 7,670 130 7,540 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? 2018 $ 72,960 7,769 100 7,668 2016 $ 67,330 7,320 140 7,180 Accounts Receivable. Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Required: 1. Calculate the receivables turnover ratios and days to collect for Patterson Beverage Company and Kapoor Cola Corporation for 2018 and 2017

Patterson Beverage Company and Kapoor Cola Corporation 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 Patterson Beverage Company 2017 2018 $36,330 4,170 568 3,618 $ 40,270 4,430 550 3,880 2016 $ 44,880 4,630 540 4,090 Kapoor Cola Corporation 2017 $ 73,600 7,670 130 7,540 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? 2018 $ 72,960 7,769 100 7,668 2016 $ 67,330 7,320 140 7,180 Accounts Receivable. Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Required: 1. Calculate the receivables turnover ratios and days to collect for Patterson Beverage Company and Kapoor Cola Corporation for 2018 and 2017

Name: **PA8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Receivables
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Description: **PA8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect**Patterson Beverage Company and Kapoor Cola Corporation are two of the largest and most successful beverage companies in the world in terms of

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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