Presented here are the average days to collect accounts receivable for four companies in different industries. The
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Presented here are the average days to collect accounts receivable for four companies in different industries. The data are for 2002.
Required:
Write a brief memorandum that provides possible answers to each of the following questions:
a. Why would a company that manufactures cars (Ford) collect its accounts receivable faster than a company that sells furniture (Haverty’s)?
b. Why would a company that manufactures and sells large airplanes (Boeing) collect its accounts receivable faster than a company that sells toothpaste and soap (Colgate Palmolive)?
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Related Book For 
Survey Of Accounting
ISBN: 9780077503956
1st Edition
Authors: Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay
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