Question: Consider the following ï¬nancial information for a recent year for two fairly similar companies: Required: (a) Compute each companys accounts receivable turnover ratio and age

Consider the following ï¬nancial information for a recent year for two fairly similar companies:

Required:
(a) Compute each company€™s accounts receivable turnover ratio and age of receivables.
(b) Which of these companies is better at managing its accounts receivable? Explain.

Aliza Corp. Breta Corp. Cash sales Net credit sales Total sales Average accounts 20,000 40,000 60,000 $100,000 $100,000 80,000 receivable during the year 20,000 5,000

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