Accounts Receivable Turnover and Average Collection Period The Outback Corporation disclosed the following financial information (in millions) in its recent annual report: 20182019Net Sales$72,500$83,750Beginning Accounts Receivable (net)3,8964,100Ending Accounts Receivable (net)4,1003,596 Calculate the accounts receivable turnover ratio for both years. (Round to two decimal points.)Calculate the average collection period for both years. (Use 365 days for calculation. Round to the nearest whole number.)Is the company’s accounts receivable management improving or deteriorating? 20182019a. Accounts receivable turnoverAnswerAnswerb. Average collection periodAnswerAnswerc. The company's receivable managementAnswerImprovedDeteriorated

Requirement 1: Compute the accounts receivable turnover ratio for 2018.

Answered: Accounts Receivable Turnover and…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 15P: Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed...

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Accounts Receivable Turnover and Average Collection Period

The Outback Corporation disclosed the following financial information (in millions) in its recent annual report:

	2018	2019
Net Sales	$72,500	$83,750
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. (Round to two decimal points.)
Calculate the average collection period for both years. (Use 365 days for calculation. Round to the nearest whole number.)
Is the company’s accounts receivable management improving or deteriorating?

	2018	2019
a. Accounts receivable turnover	Answer	Answer
b. Average collection period	Answer	Answer
c. The company's receivable management	AnswerImprovedDeteriorated

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