The company that is having the most problem collecting their accounts receivable is: Company 4.
Company 1
Accounts receivable turnover= $2.6 million/$198,000
Accounts receivable turnover= 13.13
Average collection period=365/13.13
Average collection period= 27.8 days
Company 2
Accounts receivable turnover=$150,000/$12,000
Accounts receivable turnover= 12.5
Average collection period=365/12.5
Average collection period= 29.2 days
Company 3
Accounts receivable turnover=$490,000/$27,000
Accounts receivable turnover= 18.15
Average collection period=365/18.15
Average collection period=20.11 days
Company 4
Accounts receivable turnover=$1.4 million/$153,000
Accounts receivable turnover= 9.15
Average collection period=365/9.15
Average collection period= 39.9 days
Based on the above calculation the company that is having the most problem collecting their accounts receivable is Company 4 reason been that Company 4 average collection period of 39.9 days is longer than their credit term period.
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