Mathis and Hashey are two of the largest and most successful toymakers in the world, in terms of the products they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information reported in their annual reports (amounts in millions).
Mathis
Hashey
Fiscal Year Ended:
2015
2014
2013
2015
2014
2013
Net Sales
$7,156
$6,731
$7,118
$5,402
$5,368
$5,222
Accounts Receivable
1,228
834
960
1,052
1,132
704
Allowance for Doubtful Accounts
28
31
32
37
39
38
Accounts Receivable, Net of Allowance
1,200
803
928
1,015
1,093
666
Required:
1. Calculate the receivables turnover ratios and days to collect for Mathis and Hashey for 2015 and 2014. TIP: In your calculations, use average Accounts Receivable, Net of Allowance. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.)
2015
2014
Mathis
Hashey
Mathis
Hashey
Receivables Turnover Ratio
Days to Collect