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

question 34

Essay

Tecom 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 receivables of $81,350. 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:

Intramuscular Injection

A method of administering medication deep into the muscles, allowing for faster absorption than subcutaneous injections.

Buccal Area

The region of the mouth that refers to the inner cheek tissues, important in dental health and medication delivery.

IV Infusion

The delivery of liquid substances directly into a vein via an intravenous line for therapeutic purposes.

Slow Drip

A method typically used in medical treatments where fluids, such as medication or nutrients, are administered intravenously into the body at a slow rate.