Question
Mathis and Hashey are two of the largest and most successful toymakers in the world, in terms of the products they sell and their receivables
Mathis and Hashey 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).
Mathis | Hashey | ||||||||||||||||||
Fiscal Year Ended: | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||
Net Sales | $ | 4,856 | $ | 4,231 | $ | 4,918 | $ | 3,002 | $ | 2,868 | $ | 3,022 | |||||||
Accounts Receivable | 1,118 | 724 | 850 | 942 | 1,022 | 594 | |||||||||||||
Allowance for Doubtful Accounts | 17 | 20 | 21 | 26 | 28 | 27 | |||||||||||||
Accounts Receivable, Net of Allowance | 1,101 | 704 | 829 | 916 | 994 | 567 | |||||||||||||
Required:
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Calculate the receivables turnover ratios and days to collect for Mathis and Hashey for 2015 and 2014. 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.)
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