November 29, 2015

Homework Help: Accounting

Posted by Denise on Sunday, February 25, 2007 at 1:35am.

Assume that Hickory Company has the following data related to its accounts receivable:

Net Sales $ 1,425,000
Net receivables
Beginning of year 375,000
End of year 420,000

Net Sales $ 1,650,000
Net receivables
Beginning of year 333,500
End of year 375,000

Use the data to compute accounts receivable turnover ratios and average collection periods for 2005 and 2006.

Based on your analysis, is Hickory Company managing its receivables better or worse in 2006 than it did in 2005?

Please help with the above question.

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