Description
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Explanation & Answer
Hello again, please disregard the word file posted above and use this one instead. The first one is correct, I just added the title to the last section Thank you
MANAGEMENT OF RECEIVABLES
Management of Receivables
(COLUMBIA SPORTSWEAR Versus VF CORPORATION)
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MANAGEMENT OF RECEIVABLES
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Abstract
The purpose of this analysis is to explain how ratio analysis can help analysts of the
financial statements understanding the management of accounts receivable – the second
most liquid asset on the balance sheet. In my analysis, I am going to examine the data
for two companies – Columbia Sportswear and VF Corporation, analyzing their credit
and collection policies and provide recommendations if needed.
Management of Accounts Receivable
Since most Sales in the United States are made on credit, the reporting, analysis, and
management of accounts receivable are of great importance.
Definition of Accounts Receivables:
Accounts receivable are the amounts due to a company and expected to be converted to
cash in the short-term (within 30 to 90 days for most companies).
“Receivables are amounts owed to the company by the customers to who company
sell goods or services in the normal course of business. The main purpose of
managing receivables is to meet competition and to increase sales and profits.”i
Having said that, we can see that ...