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:

Cognitive

Relating to mental processes such as awareness, perception, reasoning, and judgement.

Behavioral

Pertaining to behaviors, a term often used to describe actions or reactions of individuals in response to external or internal stimuli.

Psychodynamic Therapist

A professional who applies theories and practices of psychodynamic psychology, focusing on unconscious processes as they are manifested in a patient's present behavior.

Free Associate

A psychoanalytic technique where patients are encouraged to express their thoughts freely, letting their mind wander without censorship, to uncover unconscious thoughts and feelings.