Determine the receivables turnover ratio

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Question - The Second Cup is a Canadian specialty coffee retailer with over 350 cafes that serve the needs of thousands of guests daily. Its annual reports include the following details (in thousands of Canadian dollars):








Net sales







Accounts receivable







Allowance for doubtful accounts







Required -

1. Determine the receivables turnover ratio and average collection period for 2011-2015, and comment on the results.

2. Explain the meaning of the numbers that you calculated in requirement (1).

3. Compute the ratio of allowance for doubtful accounts to accounts receivable for each of the six years, and comment on the results.

Reference no: EM132234915

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