Business Finance
ACC291 Phoenix Week 1 Management of Accounts Receivable Analysis

ACC291

University of Phoenix

Question Description

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

Develop an 875-word analysis providing conclusions concerning the management of accounts receivable based on the financial statements of Columbia Sportswear Company presented in Appendix B and the financial statements of VF Corporation presented in Appendix C, including the following:

  • Based on the information contained in these financial statement, compute the following 2014 values for each company:
    • Accounts receivable turnover (For VF, use "Net sales" and assume all sales were credit sales)
    • Average collection period for accounts receivable
  • What conclusions concerning the management of accounts receivable can be drawn from this data?

Use the Week 1 Excel® spreadsheet to show your work and submit with your analysis.

Click the Assignment Files tab to submit your assignment.

Unformatted Attachment Preview

Name Section Date (a) Chapter 8 Comparative Analysis Problem Columbia Sportswear Company vs. VF Corporation Columbia Sportswear VF Corporation (1) Accounts receivable turnover: (2) Average collection period: (b) 475 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making C Specimen Financial Statements: VF Corporation https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/12/4@0:98.7 1/6 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: peaches2294@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. VF Corporation is a leader in outdoor sportswear. The following are VF's financial statements as presented in its 2014 annual report. To access VF's complete annual report, including notes to the financial statements, follow these steps: 1. Go to www.vfc.com. 2. Select the Investor Relations link and then select Financial Reports. 3. Select the 2014 Annual Report on Form 10‐K. 4. The Notes to Consolidated Financial Statements begin on page F‐10. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/12/4@0:98.7 2/6 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: peaches2294@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/12/4@0:98.7 3/6 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: peaches2294@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/12/4@0:98.7 4/6 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: peaches2294@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/12/4@0:98.7 5/6 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/12/4@0:98.7 6/6 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making B Specimen Financial Statements: Columbia Sportswear Company https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/48!/4/4/14/2@0:32.4 1/8 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: peaches2294@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Columbia Sportswear Company is a leader in outdoor sportswear. The following are Columbia's financial statements as presented in its 2014 annual report. To access Columbia's complete annual report, including notes to the financial statements, follow these steps: 1. Go to www.columbia.com. 2. Select Financial Information and then Annual Reports under the Investor Relations tab near the bottom of the page. 3. Select the 2014 Annual Report. 4. The Notes to Consolidated Financial Statements begin on page 50. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/48!/4/4/14/2@0:32.4 2/8 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/48!/4/4/14/2@0:32.4 3/8 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: peaches2294@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/48!/4/4/14/2@0:32.4 4/8 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: peaches2294@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/48!/4/4/14/2@0:32.4 5/8 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/48!/4/4/14/2@0:32.4 6/8 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/48!/4/4/14/2@0:32.4 7/8 7/13/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: peaches2294@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/48!/4/4/14/2@0:32.4 8/8 ...
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Final Answer

Attached.

Running Head: MANAGEMENT OF ACCOUNTS RECEIVABLE

Management of Accounts Receivable
Institution Affiliation
Date:

1

MANAGEMENT OF ACCOUNTS RECEIVABLE

2

In essence, the receivable turnover ratio can be calculated to determine how effective a
company utilizes its assets in its operations. For instance, to establish whether companies such as
VP Corporation and the Colombia Sportswear Company utilizes their assets properly the
accounts receivable turnover ratio is calculated by using data from the financial statements.
Furthermore, calculating the receivable turnover ratio enables one to determine whether the
accounts are managed effectively. Thus, the receivable ratio is seen as an activity ratio that
measures the effectiveness of a company in managing the accounts receivables as well as
utilizing assets. This paper attempts to compare the receivable turnover ratio for two companies
namely, VP Corporation and Colombia Sportswear Company. It will evaluate the management of
accounts receivables in each company based on the calculated turnover ratio. Also, the paper will
determine the average collection period for accounts receivable in each company.
The receivable turnover ratio is calculated by taking the net value of credit sales in a
company within a given period and dividing it by the average accounts receivable in the s...

benwamonicah (20339)
New York University

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