Compute the accounts receivable turnover for both companies

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Reference no: EM131916183

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.

Company A: _____________ times

Company B: _____________ times

What is the average length of time each company takes to collect

its receivables? Assume 360 days in a year

Company A: _____________ days

Company B: _____________ days

Reference no: EM131916183

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