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 2005 and 2004, H.J. Heinz reported the following (in thousands):
|
|
Year Ending |
|
|
|
April 27, 2005 |
April 28, 2004 |
|
Net sales |
$8,912,297 |
$8,414,538 |
|
Account receivable |
1,092,394 |
1,093,155 |
Assume that the accounts receivable (in thousands) were $1,165,460 at the beginning of 2004.
a. Compute the accounts receivable turnover for 2005 and 2004. Round to one decimal place.
b. Compute the days’ sales in receivables at the end of 2005 and 2004. Round to one decimal place.
c. What conclusions can be drawn from these analyses regarding Heinz’s efficiency in collecting receivable