Purpose of Assignment

The purpose of this assignment is to help you understand the basics of financial statement analysis using financial ratios on the assets section of the balance sheet, data interpretation, and how ratios are used to gain insight about the management of receivable.

Assignment Steps

Resources: Financial Accounting: Tools for Business Decision Making

Develop an 875-word analysis providing conclusions concerning the management of accounts receivable based on the financial statements of Columbia Sportswear Company presented in Appendix B and the financial statements of VF Corporation presented in Appendix C, including the following:

• Based on the information contained in these financial statement, compute the following 2014 values for each company:
  • Accounts receivable turnover (For VF, use “Net sales” and assume all sales were credit sales)
  • Average collection period for accounts receivable
• What conclusions concerning the management of accounts receivable can be drawn from this data?

Use the Week 1 Excel^® spreadsheet to show your work

The written analysis that is required with this assignment should be written following the APA format. I do expect the analysis to thoroughly answer each required point. To determine this for yourself take a minute to read your responses and ask yourself if an external user were to read this information would they have a basic understanding of the subject matter.

There will be two files for this assignment, the spreadsheet template provided with your calculations and the written analysis in Word.