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Compute the accounts receivable turnover

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Problem - 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. Compute the accounts receivable turnover for both companies. What is the average length of time each company takes to collect its receivables?

Reference no: EM132868947

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