Answered step by step
Verified Expert Solution
Question
00
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
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 Mccounts Receivable Allowance for Doubtful Accounts Account Receivable, Net of Allowance 2018 3 46310 4,730 Soda Company 2017 $ 51,220 5.060 680 4,300 2016 5 51,090 5,280 670 6.610 Has Beverages 2018 2017 $ 94,448 $94.865 8,830 8.730 100 130 3,730 3.600 2016 $ 76,620 8,330 140 8.190 590 4,040 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 convertits receivables into cash in 2017? complete this question by entering your answers in the tabs below. Req1 Req 2A Req 28 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.) 2018 2017 Soda Company HBB Beverages Soda Company HBB Beverages Recolvables Turnover Ratio Days to collect Reg 2A >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started