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The following information is available from the financial statements of Amamco Corp. and Brindle Corp.: Sales Beginning receivables, gross. Ending receivables, gross.. (in millions)
The following information is available from the financial statements of Amamco Corp. and Brindle Corp.: Sales Beginning receivables, gross. Ending receivables, gross.. (in millions) Amamco Corp. Brindle Corp. $47,000 $25,000 24,000 2,500 18,000 3,500 Instructions Use the answer space below to do the following: (a) Calculate the following for each company. Receivables turnover (assume all sales were credit sales.) Average collection period (b) Provide a conclusion concerning the management of accounts receivable that can be drawn from this data.
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