The following are summary financial data for Parker Enterprises, Inc., and Boulder, Inc., for three recent years:

Question:

1. Using the above data, compute the accounts receivable turnover and average collection period for each company for Years 2 and 3.
2. Which company appears to have the better credit managementpolicy?

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 30, 2011 05:58 AM

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The following are summary financial data for Parker Enterprises, Inc., and Boulder, Inc., for three recent years:

Question:

Year 3 Year 2 Year 1 Net sales (in millions) Parker Enterprises, Inc.anS 3,700 17,825 3,875 3,882 15,242 Boulder, Inc. 16,549 Net accounts receivable (in millions: Parker Enterprises, Inc. Boulder, Inc. w1,400 5,525 1,800 5,800 1,725 6,205

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