FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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E8-7A
The Forrester Corporation disclosed the following financial information (in millions) in its recent annual report:
2015 2016
Net sales $71, 050 $81, 662
Beginning accounts receivable (net) 3, 896 4, 100
Ending accounts receivable (net) 4, 100 3, 596
- Calculate the accounts receivable turnover ratio for both years
- Calculate the average collection period for both years.
- Is the company’s
account receivable management improving or deteriorating?
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