The following are summary financial data of the three most recent years for two companies:

a. Using the data above, compute the accounts receivable turnover and average collection period for each company for 2013 and 2012. (Round to two decimal places)
b. Which company appears to have a better credit collection policy? Explain why.

Question

The following are summary financial data of the three most recent years for two companies:

a.	Using the data above, compute the accounts receivable turnover and average collection period for each company for 2013 and 2012. (Round to two decimal places)
b.	Which company appears to have a better credit collection policy? Explain why.

Quizplus · Accepted Answer

The Answer of The following are summary financial data of the three most recent years for two companies:

a.	Using the data above, compute the accounts receivable turnover and average collection period for each company for 2013 and 2012. (Round to two decimal places)
b.	Which company appears to have a better credit collection policy? Explain why.

The Following Are Summary Financial Data of the Three Most