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PA 8 - 5 ( Algo ) Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect [ LO 8 - 4 ]
PAAlgo Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect LO
Fizzy Sodas and Hayes Companies are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports amounts in millions
Fiscal Year Ended: Fizzy Sodas Hayes Companies
Net Sales $ $ $ $ $ $
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
Required:
Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies for and
a Which of the companies was quicker to convert its receivables into cash in
b Which of the companies was quicker to convert its receivables into cash in
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