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:

Placement Agencies

Organizations that specialize in fitting individuals with suitable jobs or employment opportunities, often offering services for both job seekers and employers.

Search Firms

Businesses that specialize in recruiting candidates for specific roles or industries, often used for executive or niche positions.

Recruitment Sources

Various channels or methods employed to find potential candidates for job vacancies, such as job boards, social media, and recruiting firms.

Highly Specialized Recruits

Individuals hired based on their advanced skills or expertise in a narrowly defined field, often requiring significant education or experience.