Evaluate the management of accounts receivable

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Tecom had net sales of $315,000 and average accounts receivable of $75,600. Its competitor, ZCom, had net sales of $299,000 and average accounts receivables of $81,350. Calculate the accounts receivable turnover for both companies. Which company is doing a better job of managing its accounts receivables? Your answer must include the following items :

Question 1: Explain The indication of these ratios and if its increase or decrease is better .

Question 2: Get another ratio to evaluate the management of Accounts receivable and explain it . ( If available )

Reference no: EM132538784

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