Calculate the average days to collect accounts receivables

Assignment Help Accounting Basics
Reference no: EM13929155

AutoZone, Inc., claims to be œthe nations leading auto parts retailer. It sells replacement auto parts directly to the consumer. BorgWarner, Inc. , has over 17,000 employees and produces automobile parts, such as transmissions and cooling systems, for the worlds vehicle manufacturers. The following data were taken from these companies 2010 annual reports. All dollar amounts are in thousands.

1368_264-B-A-C-R (1723).png

Required: 

a. Before performing any calculations, speculate as to which company will take the longest to collect its accounts receivables. Explain the rationale for your decision. 

b. Calculate the accounts receivable turnover ratios for AutoZone and BorgWarner. 

c. Calculate the average days to collect accounts receivables for AutoZone and BorgWarner. 

d. Do the calculations from Requirements b and c confirm your speculations in Requirementa?

Reference no: EM13929155

Questions Cloud

Accounting for leasing transactions : Which of the following statements is true when comparing the accounting for leasing transactions under U.S. GAAP with IFRS?
Business advantages of topic : Feel free to address other items that you think appropriate, such as: the business advantages of this topic, how this topic relates to security issues, etc.
Competitive markets for good and services : Competitive markets for good and servicesExplain how each of the assumptions of perfect competition contributes to the fact that all decision makers in perfect competition are price takers.
Why cost estimation important component of project planning : Why is cost estimation such an important component of project planning? Discuss how it links together with the Work Breakdown Structure and the project schedule.
Calculate the average days to collect accounts receivables : Calculate the average days to collect accounts receivables for AutoZone and BorgWarner.
Probability of an event not occurring : 02. The Complement rule states that the probability of an event not occurring is
Explain more on the production possibility frontier graph : Can you explain more on the production possibility frontier graph? I'm confused by your answer on the points. Under points c and d it says 60,50,40 and 30 i believe. Can you explain please?
Discuss your first individual variable, using graphical : Discuss your second individual variable, using graphical, numerical, summary, and interpretation.
Management careers and diversity : A company has experienced several lawsuits as a result of equal employment opportunity (EEO) infractions. No diversity training has occurred within the company to date.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd