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Mega Company and Holton Company are similar firms that operate within the same industry. The following information is available: GIVEN DATA Mega Company Holton Company
Mega Company and Holton Company are similar firms that operate within the same industry. The following information is available: GIVEN DATA Mega Company Holton Company Industry Average 12 30 Accounts receivable turnover Days' sales uncollected 2014 14.9 24.5 2013 12.2 29.9 2012 11.5 31.7 2014 10.6 34.4 2013 13.1 27.9 2012 13.5 27.1 Required: a. Which company has the more favourable accounts receivable turnover in 2014? b. Which company has the greater number of days in uncollected accounts in 2014? I this generally favourable or unfavourable? c. Which company is showing an unfavourable trend in terms of managing accounts receivable
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