Question
The Forrester Corporation disclosed the following financial information (in millions) in its recent annual report: Year 1 Year 2 Net sales $271,869 $312,654 Beginning accounts
The Forrester Corporation disclosed the following financial information (in millions) in its recent annual report:
| Year 1 | Year 2 | |
|---|---|---|
| Net sales | $271,869 | $312,654 |
| Beginning accounts receivable (net) | 27,584 | 26,784 |
| Ending accounts receivable (net) | 26,784 | 26,392 |
a. Calculate the accounts receivable turnover ratio for both years. b. Calculate the average collection period for both years. Notes: 1. Round all answers to one decimal place. 2. Use rounded answer from part a. to compute the average collection period.
| Year 1 | Year 2 | |
|---|---|---|
| a. Accounts receivable turnover | ||
| b. Average collection period (days) |
c. Is the companys accounts receivable management improving or deteriorating?
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Financial Accounting A Management Perspective
Authors: Nelson Macwan
1st Edition
6206142191, 978-6206142195
