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Hall Corporation and Harris Bears are two of the largest and most successful toymakers in the world, in terms of the products they sell
Hall Corporation and Harris Bears are two of the largest and most successful toymakers in the world, in terms of the products they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information reported in their annual reports (amounts in millions). Piscal Year Ended: Net Sales 2018 56,756 Accounts Receivable Allowance for Doubtful Accounts 1,208 26 Hall 2017 $6,331 814 2016 $6,718 2018 $ 5,002 940 29 30 1,032 35 Harris 2017 $4,968 1,112 2016 $ 4,822 684 37 36 Accounts Receivable, Net of Allowance 1,182 705 910 997 1,075 640 Required: ces 1. Calculate the receivables turnover ratios and days to collect for Hall and Harris for 2018 and 2017. TIP: In your calculations, use average Accounts Receivable, Net of Allowance. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Calculate the receivables turnover ratios and days to collect for Hall and Harris for 2018 and 2017. TIP: In your calculations, use average Accounts Receivable, Net of Allowance. (Use 365 days in a year. Do not round Intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) 2018 2017 Hall Harrie Hall Harris Receivables Turnover Ratio Days to Collect Res 1 Req 2A > Show less &
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