Packaging Corporation of America produces containerboard and white papers. WestRock Co. manufactures paper products and corrugated...
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Packaging Corporation of America produces containerboard and white papers. WestRock Co. manufactures paper products and corrugated products. Financial statement data for these two companies follow: Packaging Corporation of America (S in millions of dollars) Sales Accounts receivable at Decenber 31 2015 2016 $5,779.0 689.2 2017 2018 $6,444.9 $ 636.5 $7,014.6 901.9 830.7 MestRock Co. ( in millions of dollars) Sales 2016 $14,171.8 1,592.2 12015 2017 2018 $14,859.7 Accounts receivable at Decenber 31 $16, 285.1 2,010.7 $1,575.4 Source: Computed from amounts in the Packaging Corporation of America and WestRock Co. Form 10 Ks for 2014-2018. In 2015 and 2016, WestRock was known as WRKCO., Inc. Required: 1. Determine the receivables turnover ratios for both companies for 2016, 2017, and 2018. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 1 decimal place.) 2. Which company collected its accounts receivable more quickly in 2018? 1. Packaging Corporation of America Turnover 2016 2017 2018 WestRock Co 2016 2017 2018 2 Accounts collected more quickly from Packaging Corporation of America produces containerboard and white papers. WestRock Co. manufactures paper products and corrugated products. Financial statement data for these two companies follow: Packaging Corporation of America (S in millions of dollars) Sales Accounts receivable at Decenber 31 2015 2016 $5,779.0 689.2 2017 2018 $6,444.9 $ 636.5 $7,014.6 901.9 830.7 MestRock Co. ( in millions of dollars) Sales 2016 $14,171.8 1,592.2 12015 2017 2018 $14,859.7 Accounts receivable at Decenber 31 $16, 285.1 2,010.7 $1,575.4 Source: Computed from amounts in the Packaging Corporation of America and WestRock Co. Form 10 Ks for 2014-2018. In 2015 and 2016, WestRock was known as WRKCO., Inc. Required: 1. Determine the receivables turnover ratios for both companies for 2016, 2017, and 2018. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 1 decimal place.) 2. Which company collected its accounts receivable more quickly in 2018? 1. Packaging Corporation of America Turnover 2016 2017 2018 WestRock Co 2016 2017 2018 2 Accounts collected more quickly from
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Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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