1. Ahmed Company would like to compare its days' sales in recoivables with that of a competitor, Khald Company Both companies have had a s the past, but Khalid Company has had better profit results. Ahmed Company suspects that one reason for the better profit res is thd Kheld Congr better job of managing receivables. Ahmed Company uses a calendar year that ends on December 31, while Khalid Company uses a focal year that onds 31. Information related to sales and receivables of the two companies follows: For Year Ended December 31, 20XX Receivables, less allowance for doubtful Ahmed Company Not sales $3,780,000 accounts of $16,000 253,000 For Year Ended July 31, 20XX Khalid Company Not sales $3,885,000 Receivables, less allowance for doubtful accounts of $8,000 138,000 Required a. Compute the days' sales in receivables for both companies. (Use year-end gross receivables) [2 marks] Company Ahmed Khalid Days' Sales in Receivables Ratio Activate Windo