Question
1. Ahmed Company would like to compare its days' sales in receivables with that of a competitor, Khalid Company Both companies have had ser
1. Ahmed Company would like to compare its days' sales in receivables with that of a competitor, Khalid Company Both companies have had ser the past, but Khalid Company has had bottor profit results Ahmed Company sumpects that one reason for the better profk resist Carey s better job of managing receivables. Ahmed Company uses a calendar year that ends on December 31, while Khaid Company as a cal year that wils in dy 31 Information related to sales and receivables of the two companies follows: Ahmed Company Not sales For Year Ended December 31, 20XX Receivables, loss allowance for doubtful accounts of $16,000 $3,780,000 253,000 Required For Year Ended July 31, 20XX Khalid Company Net sales $3,885,000 Receivables, less allowance for doubtful accounts of $8,000 138,000 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 Windows to Setting to A
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