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Please help me find the right solution. TYIA. PA8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect [LO 8-4] Soda
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PA8-5 (Algo) Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect [LO 8-4] Soda Company and HBB Beverages are two of the largest and most successful beverage companles in the world in terms of the products that they sell and their recelvables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Required: 1. Calculate the recelvables turnover ratlos and days to collect for Soda Company and HBB Beverages for 2018 and 2017. 2-a. Which of the companies was quicker to convert its recelvables into cash in 2018 ? 2-b. Which of the companies was quicker to convert its recelvables into cash in 2017 ? Calculate the receivables turnover ratios and days to collect for Soda Company and HBB Beverages for 2018 and 2017. (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.)Step by Step Solution
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