The receivables turnover ratio and the average collection period for Walco: 141.43 times; 2.58 days.
Receivable turnover ratio:
<u>WALCO</u>
Average receivable=1785+2732/2
Average account receivable=4517/2
Average account receivable=$2258.5
Receivable turnover ratio=319427/2258.5
Receivable turnover ratio=141.43 times
Average collection period =365/141.43
Average collection period=2.58 days
<u>TARMART</u>
Average receivable=6016+6544/2
Average receivable=12560/2
Average receivable=$6280
Receivable turnover ratio=64878/6280
Receivable turnover ratio=10.33 times
Average collection period=365/10.33
Average collection period=35.34 days
<u>COSTGET</u>
Average receivable=599+635/2
Average receivable=1234/2
Average receivable= $617
Receivable turnover ratio=65963/617
Receivable turnover ratio=106.87 times
Average collection period=365/106.87
Average collection period=3.42 days
Inconclusion the receivables turnover ratio and the average collection period for Walco: 141.43 times;2.58 days
Your question is incomplete, but most probably your full question was:
Below are amounts (in millions) from three companies' annual reports. beginning accounts receivable ending accounts receivable net sales Walco $1,785 $2,732 $319,427 Tarmart 6,016 6,544 64,878 CostGet 599 635 65,963 required: 1. calculate the receivables turnover ratio and the average collection period for Walco, Tarmart and CostGet.
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