Suppose the 2014 financial statements of 3M Company report net sales of $21.9 billion. Accounts receivable (net) are $3.43 billion at the beginning of the year and $3.51 billion at the end of the year. 1) Compute 3M's receivable turnover. 2) Compute 3M's average collection period for accounts receivable in days.

Suppose the 2014 financial statements of 3M Company report net sales of $21.9 billion. Accounts receivable (net) are $3.43 billion at the beginning of the year and $3.51 billion at the end of the year. 1) Compute 3M's receivable turnover. 2) Compute 3M's average collection period for accounts receivable in days.

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 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Suppose the 2022 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.2 billion at the beginning of the year and $3.25 billion at the end of the year. Compute 3M’s accounts receivable turnover. - Accounts Recievable turnover ratio=? (times) Compute 3M’s average collection period for accounts receivable in days - Average collection period =? (days)
The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) 2022 $550,000 2022 2021 4,300,000 4,000,000 7.9 times $540,000 2021 7.5 times 46.2 days 48.7 days What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.