The following information is from the annual financial statements of Raheem Company. Year 3 $ 490,000 49,500 Year 2 $ 421,000 47,300 Net sales Accounts receivable, net (year-end) Year 1 $ 461,000 44,000 (1) Compute its accounts receivable turnover for Year 2 and Year 3. (2) Assuming its competitor has a turnover of 15.2, is Raheem performing better or worse at collecting receivables than its competitor?
The following information is from the annual financial statements of Raheem Company. Year 3 $ 490,000 49,500 Year 2 $ 421,000 47,300 Net sales Accounts receivable, net (year-end) Year 1 $ 461,000 44,000 (1) Compute its accounts receivable turnover for Year 2 and Year 3. (2) Assuming its competitor has a turnover of 15.2, is Raheem performing better or worse at collecting receivables than its competitor?
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
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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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The following information is from the annual financial statements of Raheem Company.
Year 2
$ 421,000
47,300
Net sales
Accounts receivable, net (year-end)
(1) Compute its accounts receivable turnover for Year 2 and Year 3.
(2) Assuming its competitor has a turnover of 15.2, is Raheem performing better or worse at collecting receivables than its competitor?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute its accounts receivable turnover for Year 2 and Year 3.
Year 2:
Year 3:
Year 3
$ 490,000
49,500
Choose Numerator:
1
1
1
1
Accounts Receivable Turnover
Choose Denominator:
=
=
Year 1
$ 461,000
44,000
=
Accounts Receivable Turnover
Accounts receivable turnover
times
times
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