Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows: ($ in millions)Net SalesBeginning Accounts ReceivableEnding Accounts ReceivableSun Health$2,730$255$242Select Medical3,040454393Required:1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical.1-b. Which company maintains a higher receivables turnover? Req laCalculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. (Enter dollar amounts inmillions, and for denominators, to 1 decimal place.)Sun HealthSelect MedicalReq 1bSun HealthSelect MedicalChoose Numerator:Choose Numerator:Receivables Turnover RatioTChoose Denominator:Average Collection PeriodI1Choose Denominator:Receivables Turnover Ratio0 times0 timesAverage Collection Period0 days0 days

The Receivable Turnover Ratio measures how efficiently a company is able to collect its accounts…

Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows: ($ in millions) Net Sales Beginning Accounts Receivable Ending Accounts Receivable Sun Health $2,730 $255 $242 Select Medical 3,040 454 393 Required: 1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. 1-b. Which company maintains a higher receivables turnover?

Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows: ($ in millions) Net Sales Beginning Accounts Receivable Ending Accounts Receivable Sun Health $2,730 $255 $242 Select Medical 3,040 454 393 Required: 1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. 1-b. Which company maintains a higher receivables turnover?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9E

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($ in millions)	Net Sales	Beginning Accounts Receivable	Ending Accounts Receivable
Sun Health	$2,730	$255	$242
Select Medical	3,040	454	393

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