The purpose of this
assignment is to help you understand the basics of financial statement analysis
using financial ratios on the assets section of the balance sheet, data
interpretation, and how ratios are used to gain insight about the management of
receivable.
Assignment
Steps
Resources:Financial Accounting: Tools for Business
Decision Making
Developan 875-word analysis providing conclusions
concerning the management of accounts receivable based on the financial
statements of Columbia Sportswear Company presented in Appendix B and the
financial statements of VF Corporation presented in Appendix C, including the
following:
·
Based on the
information contained in these financial statement, compute the following 2014
values for each company:
o Accounts receivable turnover (For VF, use
“Net sales” and assume all sales were credit sales)
o Average collection period for accounts
receivable
·
What conclusions
concerning the management of accounts receivable can be drawn from this
data?
Usethe Week 1 Excel®spreadsheet to show your work and submitwith your analysis.
