Trade Receivable turnover Ratio: It is a ratio between the total credit sales and average trade receivables of the business. It tells us about the how much of our turnover happens in credit and Amount of sales to the trade receivables. Days Sales in receivables: It means we calculate the number of days our trade receivables becomes trough credit sale. Requirement-1: To Calculate: Accounts receivable turnover and the day's sales in receivables.

Question

Fizzy Sodas and Hayes Companies are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Req 1 Complete this question by entering your answers in the tabs below. Req 2A Required: 1. Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies for 2018 and 2017. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? Req 2B Receivables Turnover Ratio Days to collect 2018 2018 $ 40,630 4,410 620 3,790 Fizzy Sodas Fizzy Sodas 2017 $ 45,120 4,710 610 4,100 Hayes Companies…

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Question

Chapter 9, Problem 9.10E

To determine

Concept Introduction:

Trade Receivable turnover Ratio: It is a ratio between the total credit sales and average trade receivables of the business. It tells us about the how much of our turnover happens in credit and Amount of sales to the trade receivables.

Days Sales in receivables: It means we calculate the number of days our trade receivables becomes trough credit sale.

Requirement-1:

To Calculate:

Accounts receivable turnover and the day's sales in receivables.

To determine

Concept Introduction:

Trade Receivable turnover Ratio: It is a ratio between the total credit sales and average trade receivables of the business. It tells us about the how much of our turnover is happen in credit and how many times our sales to the trade receivables.

Days Sales in receivables: It means we calculate in how many days our trade receivables becomes trough credit sale.

Requirement-2:

To Identify:

Compare the two companies with regard to their credit card policy.

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