-financial-accounting-Tools-for-business-decision-Making

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Purpose of Assignment

The purpose of this assignment is to help you understand the basics of financial statement analysis using financial ratios on the assets section of the balance sheet, data interpretation, and how ratios are used to gain insight about the management of receivable.

Assignment Steps

Resources: Financial Accounting: Tools for Business Decision Making

Part I: Using the financial statements of Columbia Sportswear Company presented in Appendix B and the financial statements of VF Corporation presented in Appendix C, compute the following 2014 values for each company (show your work, not just your answer):

1) Accounts receivable turnover (For both companies, use “Net sales” and assume all sales were credit sales)

2) Average collection period for accounts receivable

Part II: What conclusions concerning the management of accounts receivable can be drawn from this data? Write a 200-word analysis providing conclusions concerning the management of accounts receivable based on your ratios and the information contained in the financial statements.

Use the Week 1 Excel® spreadsheet to show your work and submit (the Excel® spreadsheet also contains the Grading Rubric I will be using).

Appendix B

https://phoenix.vitalsource.com/#/books/9781119228…

Appendix C

https://phoenix.vitalsource.com/#/books/9781119228…

Ensure to put the write up within the excel.