Question

1a. A company had accounts receivable of %100,000 on 12-31-16 and $150,000 on 12-31-17. If its...

1a. A company had accounts receivable of %100,000 on 12-31-16 and $150,000 on 12-31-17. If its accounts receivable turnover was 6.0, what was the amount of its credit sales for 2017?

1b.what is the number of days sales in receivables?


2. what are the two "timing differences" which occur when preparing a bank reconciliation?

3a.Looking at individual assets on a balance sheet as a percentage of the total assets is using,,,,,,,,,
3b. Looking at dollar and percentage changes in accounts from one period to the next is using,,,,,,,

Homework Answers

Answer #1

Answer 1.

Beginning Accounts Receivable = $100,000
Ending Accounts Receivable = $150,000
Accounts Receivable Turnover = 6.0

Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
Average Accounts Receivable = ($100,000 + $150,000) / 2
Average Accounts Receivable = $125,000

Accounts Receivable Turnover = Credit Sales / Average Accounts Receivable
6.0 = Credit Sales / $125,000
Credit Sales = $750,000

Number of days sales in receivable = 365 / Accounts Receivable Turnover
Number of days sales in receivable = 365 / 6.0
Number of days sales in receivable = 60.83 days

Answer 3.

Looking at individual assets on a balance sheet as a percentage of the total assets is using vertical analysis.
Looking at dollar and percentage changes in accounts from one period to the next is using horizontal analysis.

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