Question - The following information was taken from recent annual reports of the GOODYEAR TIRE RUBBER, and PPL ENERGY CO, a public utility.
Net Sales......... Gooyear = $19.6 billion .... PPL $5.1 billion
Average Accounts Receivable.... Goodyear = 3.1 billion......PPL = $376 million
a. Compute for each company the accounts receivable turnover rate for the year.
b. Compute for each company the average number of days required to collect outstanding receivables. ( round to nearest whole day0
c. Explain why the figures computed for Good Year in parts a. and b. Are so different then those computed for PPL.