The Following Information Is Available from the Annual Reports of Nite

question 41

Essay

The following information is available from the annual reports of Nite and Day Companies. Instructions
(a) Based on the preceding information, compute the following for each company:
1. Accounts receivable turnover. (Assume all sales were credit sales.)
2. Average collection period.
(b) What conclusion concerning the management of accounts receivable can be drawn from these data?

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Definitions:

Training

The process of enhancing the skills, capabilities, and knowledge of employees for doing a particular job.

Future-oriented

Relates to strategies or perspectives that focus on anticipations, trends, and planning for long-term future developments.

Technological Change

The innovation and adoption of new technologies that modify the way goods or services are produced, distributed, or consumed.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased connections among the world's economies, cultures, and populations.