TechCom Had Net Sales of $315,000 and Average Accounts Receivable

question 140

Essay

TechCom had net sales of $315,000 and average accounts receivable of $75,600. Its competitor, ZCom, had net sales of $299,000 and average accounts receivable of $81,350. Calculate the accounts receivable turnover ratio for both companies. Which company is doing a better job of managing its accounts receivable (all other things assumed to be equal)?

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Definitions:

Serendipitous Discoveries

Discoveries made unintentionally or by chance that have beneficial outcomes or provide new insights.

Drug Development

The process of bringing a new pharmaceutical drug to the market once a lead compound has been identified through the process of drug discovery.

Depression

A common mental health disorder characterized by persistent sadness, loss of interest in activities, and a variety of emotional and physical problems.

Pathological Process

The sequence of events in the development and progression of a disease or abnormal condition.