Aer Lingus provides passenger and cargo transportation services from Ireland to markets in the United Kingdom, continental
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1. Compute the following for each company for 2012:
a. The receivables turnover ratio.
b. The average collection period.
2. Based on your computations for (1), which company€™s trade receivables appear to be the more €œ liquid€ asset? Explain.
3. The companies use different currencies to prepare their financial statements. Does the use of different currencies affect the interpretation of the receivables turnover ratio and the average collection period? Explain.
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Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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