Below are amounts for two companies:
$$\begin{array} { l c c c }
& \begin{array} { c }
\text { Beginning } \
\text { Accounts } \
\text { Receivable (net) }
\end{array} & \begin{array} { c }
\text { Ending } \
\text { Accounts } \
\text { Receivable } \
\text { (net) }
\end{array} & \begin{array} { c }
\text { Net } \
\text { Sales }
\end{array} \
\hline \text { Company 1 } & \$ 1,500 & \$ 1,200 & \$ 29,700 \
\text { Company 2 } & 3,100 & 3,300 & 80,000
\end{array}$$
For each company,calculate the receivables turnover ratio.Which company appears more efficient in collecting cash from sales?

Question

Below are amounts for two companies:
$$\begin{array} { l c c c } 
& \begin{array} { c } 
\text { Beginning } \
\text { Accounts } \
\text { Receivable (net) }
\end{array} & \begin{array} { c } 
\text { Ending } \
\text { Accounts } \
\text { Receivable } \
\text { (net) }
\end{array} & \begin{array} { c } 
\text { Net } \
\text { Sales }
\end{array} \
\hline \text { Company 1 } & \$ 1,500 & \$ 1,200 & \$ 29,700 \
\text { Company 2 } & 3,100 & 3,300 & 80,000
\end{array}$$
For each company,calculate the receivables turnover ratio.Which company appears more efficient in collecting cash from sales?

Quizplus · Accepted Answer

The Answer of Below are amounts for two companies:
$$\begin{array} { l c c c } 
& \begin{array} { c } 
\text { Beginning } \
\text { Accounts } \
\text { Receivable (net) }
\end{array} & \begin{array} { c } 
\text { Ending } \
\text { Accounts } \
\text { Receivable } \
\text { (net) }
\end{array} & \begin{array} { c } 
\text { Net } \
\text { Sales }
\end{array} \
\hline \text { Company 1 } & \$ 1,500 & \$ 1,200 & \$ 29,700 \
\text { Company 2 } & 3,100 & 3,300 & 80,000
\end{array}$$
For each company,calculate the receivables turnover ratio.Which company appears more efficient in collecting cash from sales?

Below Are Amounts for Two Companies For Each Company,calculate the Receivables Turnover Ratio