Reference no: EM132986386

The Campbell Soup Company manufactures and markets food products throughout the world.  The following sales and receivable data (in millions) were reported by Campbell Soup for two recent years:

                                Year 2                  Year 1

Sales                         $8,082                $8,268

Accounts Receivable      647                          670

Assume that the accounts receivable (in thousands) were $635 million at the beginning of year 1.

Required:

Problem a. Calculate the accounts receivable turnover for Year 2 and Year 1. Round average accounts receivable to one decimal and accounts receivable turnover to two decimal places.

Problem b. Calculate the days' sales in receivables at the end of year 2 and year 1 for 365 days and round to one decimal place.

Problem c. Drawing on your knowledge from your text, what conclusions can you draw from your analyses of Campbell's receivables' collection efficiency?