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Paha777 [63]
3 years ago
8

Which best describes the role of financial planning?

Business
1 answer:
Natasha_Volkova [10]3 years ago
8 0
Investing and saving
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it would increase

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Following are the average accounts receivable and net sales reported recently by two large bever age companies (dollar amounts a
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A)   Accounts receivable turnover ratio = Net credit sales / Average accounts receivable

The following table shows the accounts receivable turnover ratio of MCB and ABI:

Particulars                                                  MCB          ABI

Net sales                                                 $8320     $17400

Average Accounts Receivable                 $720      $900

Accounts Receivable Turnover rate            11.5                19.3

B)  

Day's sale outstanding  = Accounts receivable / Total credit sales  × 365

The following table shows the days sale outstanding of MCB and ABI:

Particulars                                                    MCB             ABI

Net sales                                                    $8,320           $17,400

Average Accounts Receivable                    $720            $900

Day's sale outstanding                               31.58                 18.88

Explanation:

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