Refer to the financial statements of Tootsie Roll Industries and the accompanying notes to its financial statements in Appendix A.
Instructions
(a) Calculate the accounts receivable turnover and average collection period for 2011. (Use "Net Product Sales." Assume all sales were credit sales.)
(b) Did Tootsie Roll have any potentially significant credit risks in 2011? (Hint: Review Note 1 under Revenue recognition and Note 9 to the financial statements.)
(c) What conclusions can you draw from the information in parts (a) and (b)? Kimmel, Paul D. (2012-10-10). Accounting: Tools for Business Decision Making, Fifth Edition (Page 440). Wiley Higher Ed. Kindle Edition.