Morgan Had Net Sales of $310,000 and Average Accounts Receivable

question 163

Essay

Morgan had net sales of $310,000 and average accounts receivable of $75,600. Its competitor, Stanley, had net sales of $290,000 and average accounts receivables of $61,350. Calculate the accounts receivable turnover for both companies. Which company is doing a better job of managing its accounts receivables?

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Definitions:

Kurt Lewin

A psychologist known for founding social psychology and for developing the theory of change management, group dynamics, and action research.

Applied Social Psychology

An area of psychology that utilizes social psychological principles to address and solve real-world problems and improve quality of life.

Individual Difference Variables

Aspects or characteristics that vary from one person to another, influencing behaviors, attitudes, and preferences.

Social Cognition Approach

A perspective in psychology that emphasizes how people process, store, and apply information about others and social situations.