Question
the following information was taken from recent annual reports of Goodyear Tire & Rubber and PPL Corp., a public utility: Net sales Goodyear $21.0 billion
the following information was taken from recent annual reports of Goodyear Tire & Rubber and PPL Corp., a public utility:
Net sales Goodyear $21.0 billion PPL $12.2 billion
Average accounts receivable Goodyear 2.7 billion PPL 824 million
a. compute for each company the accounts receivable turnover rate for the year.
b. compute for each company the average number of days required to collect outstanding receivables ( round answers to nearest whole day)
c. Explain why the figures computed for Goodyear in parts a and b are so different from those computed for PPL.
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
