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Accounts Receivable Turnover and Days' Sales in Receivables The Campbell Soup Company manufactures and markets food products throughout the world. The following sales and
Accounts Receivable Turnover and Days' Sales in Receivables The Campbell Soup Company manufactures and markets food products throughout the world. The following sales and receivable data (in millions) were reported by Campbell Soup for two recent years: Sales Accounts receivable Year 2 Year 1 $8,082 $8,268 647 670 Assume that the accounts receivable (in thousands) were $635 million at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Year 2: Year 1: b. Compute the days' sales in receivables at the end of Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations, Year 2:1 Year 1: days days c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) L in the efficiency of collecting accounts receivable and is a(n)) change. The change in the days' sales in receivables indicates a(n), change
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