book 978 161 853 122 3 subsection k. unsure if the question is asking for 2008 & 2009 net sales o r just 2009 (in order to calculate receivables turnover ratio). Either way, it appears to be less than the competitors 79.0 days the question is asking for as for average collection period. some clarity here would be helpful. Thank you.

Please see page 104, pearson-AR. book 9781618531223

Cases in financial reporting, 8ed. isbn 9781618531223. Page 104. part k

Sindh siduria -104. j. Analysts typically evaluate the time it takes for a company to collect its average accounts receive balance. One common metric, accounts receivable turnover, is computed as follows: Average gross accounts receivable number of turns indicates faster collections. Another common, more intuitive metric, is the avera This ratio reveals how many times receivables "turn over" or are collected during the period. A higher collection period in days, which is easily computed from the accounts receivable turnover ratio as. may assume that all sales are made on account that is, all sales are credit sales). At December 31, Use the table below to compute the average collection period for Pearson for 2009 and 2008. You observe. Provide possible reasons for any change in average collection period from 2008 to 2009. 2007, Pearson's total (gross) trade receivables were 1,091 million. Comment on the trend you Credit sales, net Accounts receivable turnover Accounts receivable turnover BOLEH 365 days Average collection period (in days) 2009 2008 Credit sales, net Average gross trade receivables Accounts receivable turnover Average collection period k Pearson's Chief Financial Officer was assessing Pearson's efficiency in collecting trade receivables by comparing its average collection period with McGraw Hill Publishing, a close competitor to Pearson with a similar business model. He found that McGraw Hill's average collection period was 79.0 days for 2009 and decided to evaluate how Pearson might reduce its average collection period to align more with that of its peer. What actions might he implement to reduce Pearson's average collection period? Pearson plc-Accounts Receivable 3 any purpose without the written per