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). HBD Beverages 2017 $ 44,280 4,660 600 4,060 Fiay Sodas 2017 S 81,325 ,070 130 7,940 Fiscal Year Endedt Net Sales Accounts Receivable Allowance tor Doubtful Accounta Accounta Receivable, Net of Allowance 2010 $ 39,880 4,370 610 3,760 2016 $ 47,170 4,880 590 4,290 2018 $ 80, B00 ,160 100 8,060 2016 $70,760 7,690 140 7,550 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?

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). HBD Beverages 2017 $ 44,280 4,660 600 4,060 Fiay Sodas 2017 S 81,325 ,070 130 7,940 Fiscal Year Endedt Net Sales Accounts Receivable Allowance tor Doubtful Accounta Accounta Receivable, Net of Allowance 2010 $ 39,880 4,370 610 3,760 2016 $ 47,170 4,880 590 4,290 2018 $ 80, B00 ,160 100 8,060 2016 $70,760 7,690 140 7,550 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?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 10E: Accounts receivable analysis Xavier Stores Company and Lestrade Stores Inc. are large retail...

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