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Assesing How Well Companies Manage Thier Receivables
Assume that X Company has the following data related to accounts recievable:
2005 2006
Net sales $1,425,000 $1,650,000
Net Reciveables:
Beggining of Year 375,000 333,500
End of Year 420,000 375,000
Use these data to compute accounts receivable turnover ratios average collection periods for 2005 and 2006. Based on your analysis is X company managing its recivables better or worse in 2006 than it did in 2005?
Linear Mode
