Accounts receivable turnover

Assignment Help Financial Accounting

Reference no: EM13953171

Accounts Receivable Turnover

Company A reported sales during the year of $1,000,000. Its average accounts receivable balance during the year was $250,000. Company B reported sales during the same year of $400,000 and had an average accounts receivable balance of $40,000.

Required

1. Compute the accounts receivable turnover for both companies.

2. What is the average length of time each company takes to collect its receivables?

Reference no: EM13953171

Questions Cloud

Mayo hospital is investigating the possibility : Mayo Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment.

Working backward-current ratio : Cass Corp.'s December 31, 2013, balance sheet reported current assets of $120,000 and current liabilities of $100,000. The current ratio increased by 25% one year later, on December 31, 2014.

Produce and save employee employment details report : Produce and save Employee Employment Details Report. Check details carefully before processing any pays. Make any necessary corrections.

Jerielle pelley is the front of?ce manager : Jerielle Pelley is the front of?ce manager at the 125-room limited-service Best Stay Inn. She also serves as her property's RM. Jerielle has just taken a call from Lawrence, a friend and the RM at a hotel within her comp set.

Accounts receivable turnover : Company A reported sales during the year of $1,000,000. Its average accounts receivable balance during the year was $250,000. Company B reported sales during the same year of $400,000 and had an average accounts receivable balance of $40,000.

Describe the relationship between crime and law : Write a 700- to 1,050-word paper in which you include the following: Describe the relationship between crime and law. Discuss how crime is measured. Explain how the consensus model and the conflict model differ from each other

Calculate sensitivity and specificity of this screening test : Tonometry is a common form of glaucoma screening, whereas, for example, an eye is classified as positive if it has an intraocular pressure of 21 mmHg or higher at a single reading. Given the data shown in Table E1.28, calculate the sensitivity and..

Components of the criminal justice system : Create a 8- to 10-slide Microsoft PowerPoint presentation, including speaker notes, in which you explain the following: The components of the criminal justice system. The relationship between criminal justice and the structure of government

Purposes of preparing a statement of cash flows : According to GAAP, how should the investment in U.S. Treasury notes be classified for purposes of preparing a statement of cash flows for the year ended December 31, 2014? Explain your answer.

User Account

All Pages