The following information is available from the annual reports of Nite and Day Companies.
(In millions) Instructions
(a) Based on the preceding information, compute the following for each company:
1. Accounts receivable turnover. (Assume all sales were credit sales.)
2. Average collection period.
(b) What conclusion concerning the management of accounts receivable can be drawn from these data?

Question

The following information is available from the annual reports of Nite and Day Companies.
(In millions)  Instructions
(a) Based on the preceding information, compute the following for each company:
1. Accounts receivable turnover. (Assume all sales were credit sales.)
2. Average collection period.
(b) What conclusion concerning the management of accounts receivable can be drawn from these data?

Quizplus · Accepted Answer

The Answer of The following information is available from the annual reports of Nite and Day Companies.
(In millions)  Instructions
(a) Based on the preceding information, compute the following for each company:
1. Accounts receivable turnover. (Assume all sales were credit sales.)
2. Average collection period.
(b) What conclusion concerning the management of accounts receivable can be drawn from these data?

The Following Information Is Available from the Annual Reports of Nite