Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

disregard excel question The accounts receivable turnover ratio is calculated by dividing: O total sales by ending gross accounts receivable. O total sales by average

disregard excel question
image text in transcribed
image text in transcribed
image text in transcribed
The accounts receivable turnover ratio is calculated by dividing: O total sales by ending gross accounts receivable. O total sales by average gross accounts receivable. net credit sales by average net accounts receivable. Onet credit sales by average gross accounts receivable. Presented here is selected financial information (in millions of dollars) from the 2017 financial statements of Canadian National Railway Company and Canadian Pacific Railway Limited: Sales Allowance for doubtful accounts, beginning of year Allowance for doubtful accounts, end of year Accounts receivable balance (net), beginning of year Accounts receivable balance (net), end of year CN Railway $13,041 28 16 875 984 CP Railway $6,554 32 25 591 687 Calculate the receivables turnover and average collection period for both companies. (Round times to 1 decimal place, eg. 52.7 and all other answers to decimal places, s. 52.) CN Railway CP Railway times times Receivables turnover days days Average collection period Comment on the difference in their collection experiences. V was more efficient than in collecting its receivables. CN Railway Media CP Railway

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Water Audits And Loss Control Programs Manual Of Water Supply Practices M36

Authors: AWWA Staff

3rd Edition

1583216316, 978-1583216316

More Books

Students also viewed these Accounting questions