H.J. Heinz Company was founded in 1869 at Sharpsburg, Pennsylvania, by Henry J. Heinz. The company manufactures and markets food products throughout the world, including ketchup, condiments and sauces, frozen food, pet food, soups, and tuna. For the fiscal years 2007 and 2006, H.J. Heinz reported the following (in thousands):
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Assume that the accounts receivable (in thousands) were $1,092,394 at the beginning of 2006.
a. Compute the accounts receivable turnover for 2007 and 2006. Round to one decimal place.
b. Compute the days' sales in receivables at the end of 2007 and 2006. Round to one decimal place.
c. What conclusions can be drawn from these analyses regarding Heinz's efficiency in collectingreceivables?