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Following are the average accounts receivable and net sales reported recently by two large beverage companies ( dollar amounts are stated in millions ) .
Following are the average accounts receivable and net sales reported recently by two large beverage companies dollar amounts are
stated in millions
a Compute the accounts receivable turnover rate for each company.
b Compute the average number of days that it takes for each company to collect its accounts receivable.
c Based upon your computations in the above requirements, which company's accounts receivable appear to be most liquid?
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