Question 9 paints S 1. Khalid Company would like to compare its days' sales in receivables with that of a competitor, Ahmed Company. Both companies have had similar sales results in the past, but Ahmed Company has had better profit results. Khalid Company suspects that one reason for the better profit results is that Ahmed Company did a better job of managing receivables. Khalid Company uses a calendar year that ends on December 31, while Ahmed Company uses a fiscal year that ends on July 31, Information related to sales and receivables of the two companies follows: Required Khalid Company Net sales For Year Ended: December 31, 20XX Receivables, less allowance for doubtful accounts of $12,000 $2,340,000 165,000 For Year Ended July 31, 20XX Ahmed Company Net sales $ 2,405,000 Receivables, less allowance for doubtful accounts of $6,000 90,000 a. Compute the days' sales in receivables for both companies. (Use year-end gross receivables.) [2 marks] Company Days' Sales in Receivables Ratio