Below are amounts for two companies: For each company, calculate the receivables turnover ratio. Which company appears more efficient in collecting cash from sales?

Name: Below are amounts for two companies: For each company, calculate the receivables turnover ratio. Which company appears more efficient in collecting cash from sales?
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Question

Below are amounts for two companies:  For each company, calculate the receivables turnover ratio. Which company appears more efficient in collecting cash from sales?

Quizplus · Accepted Answer

Company 1 = $29,700 [($1,500 + $1,200)/2] = 22
Company 2 = $80,000 [($3,100 + $3,300)/2] = 25.

Below Are Amounts for Two Companies: for Each Company