Question

--/1 Question 7 View Policies Current Attempt in Progress The following information (in $ millions) was taken from recent annual reports of Kellogg Company and General Mills, Inc. Kellogg General Mills Sales revenue $13,525 $17,630 Average accounts receivable balance $1,310 $1,435 Calculate each company's accounts receivable turnover. (Round answers to 1 decimal place, e.g. 50.1.) Accounts receivable turnover times Kellogg times General Mills e Textbook and Media

Answer 1

Accounts receivable turnover for Kellogg = Sales revenue/Average accounts receivables

= 13,525/1,310

= 10.3 times

Accounts receivable turnover for General Mills = Sales revenue/Average accounts receivables

= 17,630/1,435

= 12.3 times

Average collection period for Kellogg = 365/Accounts receivable turnover

= 365/10.3

= 35.4 days

Average collection period for General Mills = 365/Accounts receivable turnover

= 365/12.3

= 29.7 days

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