Question
Four companies each have a credit term period of 45 days. Based on each companys net credit sales and average net accounts receivable for 2022,
Four companies each have a credit term period of 45 days. Based on each companys net credit sales and average net accounts receivable for 2022, which company is MOST successful at collecting their accounts receivable?\ The illustration is a table that shows the Net credit sales and Average net accounts receivable for four companies. The first column lists four elements: Company 1, Company 2, Company 3, and Company 4. The second column represents the respective Net credit sales for each of the four companies. The third column represents the respective Average net accounts receivable for each of the four companies. Company 1 has Net credit sales of $3.7 million and Average net accounts receivable of $451,000. Company 2 has Net credit sales of $1.63 million and Average net accounts receivable of $182,000. Company 3 has Net credit sales of $740,000 and Average net accounts receivable of $56,000. Company 4 has Net credit sales of $2.12 million and Average net accounts receivable of $347,000.
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