Accounts Receivable Analysis
The following data are taken from the financial statements of Outdoor Patio Inc. Terms of all sales are 2/10, n/60.
Year 3 | Year 2 | Year 1 | ||||
Accounts receivable, end of year | $190,200 | $204,000 | $219,400 | |||
Sales | 1,123,470 | 1,100,840 |
a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place.
Year 3 | Year 2 | |||
1. Accounts receivable turnover | ||||
2. Number of days' sales in receivables | days | days |
Get Answers For Free
Most questions answered within 1 hours.