FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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HBB Beverages and Fizzy Sodas 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).
Fizzy Sodas
2017
S 1,325
.070
HBD Beverages
2017
Piscal Year Ended:
2018
$ 39,80
4,370
610
3,760
2016
$ 47,170
4, 880
2018
$ 80, 800
8,160
100
8,060
2016
$70,760
$ 44, 280
4,660
Net Sales
Accounth Receivable
Allowance tor Doubtful Accounta
Accounta Receivable, Net of Allowance
7,690
140
7,550
130
7,940
600
590
4,060
4,290
Required:
1. Calculate the receivables turnover ratios and days to collect for HBB Beverages and Fizzy Sodas 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?
Complete this question by entering your answers in the tabs below.
Reg 1
Reg 2A
Reg 28
Calculate the receivables turnover ratios and days to collect for HBB Beverages and Fizzy Sodas for 2018 and 2017. (Use 365
days in a year. Do not round intermediate caiculations on Accounts Receivable Turnover Ratio. Round your final answers to 1
decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.)
2017
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Transcribed Image Text:Check my work HBB Beverages and Fizzy Sodas 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). Fizzy Sodas 2017 S 1,325 .070 HBD Beverages 2017 Piscal Year Ended: 2018 $ 39,80 4,370 610 3,760 2016 $ 47,170 4, 880 2018 $ 80, 800 8,160 100 8,060 2016 $70,760 $ 44, 280 4,660 Net Sales Accounth Receivable Allowance tor Doubtful Accounta Accounta Receivable, Net of Allowance 7,690 140 7,550 130 7,940 600 590 4,060 4,290 Required: 1. Calculate the receivables turnover ratios and days to collect for HBB Beverages and Fizzy Sodas 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Calculate the receivables turnover ratios and days to collect for HBB Beverages and Fizzy Sodas for 2018 and 2017. (Use 365 days in a year. Do not round intermediate caiculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) 2017
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