Question
Selected 2021 balance sheet and income statement information from Gia, Inc. and Bradley Company follows: ($ millions) Gia Bradley Sales $13,800 $7,500 Cost of goods
Selected 2021 balance sheet and income statement information from Gia, Inc. and Bradley Company follows: ($ millions) Gia Bradley Sales $13,800 $7,500 Cost of goods sold 10,600 5,400 Average accounts receivable 345 150 Average inventory 2,525 900 Average total assets 6,200 2,500
A. Compute the accounts receivable turnover rate for Gia (to two decimals):
B. Compute the accounts receivable turnover rate for Bradley (to two decimals):
C. Compute the average collection period for Gia (to two decimals): days
D. Compute the average collection period for Bradley (to two decimals):
E. Which company collects it accounts receivables faster?
F. Compute the inventory turnover rate for Gia (to two decimals):
G. Compute the inventory turnover rate for Bradlay (to two decimals):
H. Which company manages its inventory more efficiently?
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