Calculating Receivables Ratios for WalCo, TarMart, and CostGet |

Exercise 5-18A Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports. Beginning Ending Accounts Accounts Receivable Receivable Net Sales WalCo $1, 815 $2, 762 $322 , 427 TarMart 6, 166 6, 694 67 , 878 CostGet 629 665 68,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnover ratio" answers to one decimal place.) Receivables Turnover Ratio Receivables turnover 1I atic WalCo G times TarMart 0 times CostGet 0 times Average Collection Period = Average collection period WalCo 0 days TarMart 0 days CostGet 0 days 2. Which company appears most efficient in collecting cash from sales? . WalCo TarMart O CostGet