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Sagot :
The company that will be most successful at collecting their accounts receivable will be Company 4.
From the complete information, the account receivable turnover of company 1 will be:
= 2.6 million / 198,000
= 13.13
The account receivable turnover of company 2 will be:
= 150000 / 12000
= 12.5
The account receivable turnover of company 3 will be:
= 490000 / 27000
= 20.11
The account receivable turnover of company 4 will be:
= 1.4 million / 153000
= 9.15
Since company 4 had an average collection period of 39.9 days and this is longer than its credit term period. Therefore, it'll be the most successful at collecting their accounts receivable.
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