Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Soda Company and HBB Beverages are two of the largest and most successful beverage companies in the world in terms of the products that they

image text in transcribed

Soda Company and HBB Beverages 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: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 2018 $ 33,070 3,970 510 3,460 Soda Company 2017 $ 36,740 4,230 500 3,730 2016 $ 42,700 4,410 490 3,920 2018 $ 65,748 7,380 100 7,280 HBB Beverages 2017 $ 66,500 7,300 130 7,170 2016 $ 64,060 6,970 140 6,830 Required: 1. Calculate the receivables turnover ratios 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 receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B 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.) Show less 2018 2017 Soda Company HBB Beverages Soda Company HBB Beverages Receivables Turnover Ratio Days to collect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using QuickBooks Online For Accounting 2021

Authors: Glenn Owen

4th Edition

0357442164, 9780357442166

More Books

Students also viewed these Accounting questions

Question

What applied experiences do you have? (For Applied Programs Only)

Answered: 1 week ago