Brief Exercise 7-14 Recent financial statements of General Mills, Inc. report ne

Question

Brief Exercise 7-14 Recent financial statements of General Mills, Inc. report net sales of $12,442,000,000. Accounts receivable are $912,000,000 at the beginning of the year and $953,000,000 at the end of the year. Compute General Mills' accounts receivable turnover. (Round answer to 2 decimal places, e.g. 15.25.) Accounts receivable turnover times LINK TO TEXT Compute General Mills' average collection period for accounts receivable in days. (Round answer to 2 decimal places, e.g 15.25.) Average collection period days LINK TO TEXT Question Attempts: 0 of 15 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Answer:

Account receivable Turnover ratio

=Net sales / Avearge tarde recivable (Net)

=12,442,000,000 / (912,000,000+956,000,000)/2

=12,442,000,000 / 932,500,000

=13.34

Account receivable Turnover ratio =13.34

_______________________________________

2

Average collection period

=365 / Account receivable Turnover ratio

=365/13.34

=27.36 days

Average collection period =27.36 days

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