Question

Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms...

Accounts Receivable Analysis

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.

20Y3 20Y2 20Y1
Accounts receivable, end of year $135,400 $142,000 $150,000
Sales on account 901,550 861,400

a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year.

20Y3 20Y2
1. Accounts receivable turnover
2. Number of days' sales in receivables days days

b. The collection of accounts receivable has  . This can be seen in both the   in accounts receivable turnover and the   in the collection period.

Homework Answers

Answer #1
a
20Y3 20Y2
1. Accounts receivable turnover 6.5 5.9
2. Number of days' sales in receivables 56.2 61.9
b
The collection of accounts receivable has improved . This can be seen in both the increase in accounts receivable turnover and the decrease in the collection period.
Workings:
20Y3 20Y2
Sales on account 901550 861400
Divide by Average Accounts receivable 138700 146000
Accounts receivable turnover 6.5 5.9
20Y3 20Y2
Days in a year 365 365
Divide by Accounts receivable turnover 6.5 5.9
Number of days' sales in receivables 56.2 61.9
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms...
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $725,000 $650,000 $600,000 Sales on account 5,637,500 4,687,500 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. 20Y3 20Y2 1. Accounts...
Accounts receivable analysis The following data are taken from the financial statements of Sigmon Inc. Terms...
Accounts receivable analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.    20Y3 20Y2    20Y1 Accounts receivable, end of year $725,000 $660,000 $600,000 Sales on account 5,638,000 4,528,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a.) For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and...
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales...
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $113,600 $120,000 $128,200 Sales on account 747,520 732,190 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 20Y3 20Y2 1. Accounts receivable turnover 2. Number of days' sales in receivables days days...
Accounts Receivable Analysis The following data are taken from the financial statements of Outdoor Patio Inc....
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...
The following data are taken from or calculated from the financial statements: Current Year Preceding Year...
The following data are taken from or calculated from the financial statements: Current Year Preceding Year Average accounts receivable (net) $123,000      $95,000      Sales on account 950,000      825,000      a. Assuming that credit terms on all sales are n/45, determine for each year (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round intermediate calculations to whole numbers and final answers to two decimal places. 1. The accounts receivable turnover: Current Year Preceding Year 2. The number...
The following data are taken from the financial statements of Rainsberger Company. 2018 2017 Accounts receivable...
The following data are taken from the financial statements of Rainsberger Company. 2018 2017 Accounts receivable (net), end of year $590,000 $505,000 Net sales on account 4,100,000 3,200,000 Terms for all sales are 1/10, n/60. Compute for each year the accounts receivable turnover. At the end of 2016, accounts receivable (net) was $515,000. (Round answers to 1 decimal place, e.g. 1.6.) 2018 2017 Accounts receivable turnover times times Compute for each year the average collection period. At the end of...
Accounts Receivable and Inventory Turnover The following data (in millions) were adapted from recent financial statements...
Accounts Receivable and Inventory Turnover The following data (in millions) were adapted from recent financial statements of Apple Inc (AAPL). Year 2 Year 1 Sales $233,715 $182,795 Cost of goods sold 140,089 112,258 Operating income 71,230 52,503 Average accounts receivable 33,713 27,816 Average inventory 2,230 1,938 1. Compute the accounts receivable turnover for Years 1 and 2. Round to one decimal place. Accounts Receivable Turnover Year 2 Year 1 2. Compute the number of days' sales in receivables for Years...
Recent financial statements of Larkspur Ship Builders, Inc. report net sales of $668,500,000. Accounts receivable are...
Recent financial statements of Larkspur Ship Builders, Inc. report net sales of $668,500,000. Accounts receivable are $64,400,000 at the beginning of the year and $90,500,000 at the end of the year. (Round answers to 2 decimal places, e.g. 50.27. Use 365 days for calculation.) Compute Larkspur’s accounts receivable turnover. Accounts receivable turnover    times Compute Larkspur’s average collection period for accounts receivable in days. Average collection period for accounts receivable    days
Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both...
Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credit to their customers through their own credit card operations. Information from the financial statements for both companies for two recent years is as follows (in millions): Xavier Lestrade Sales $8,500,000 $4,585,000 Credit card receivables—beginning 820,000 600,000 Credit card receviables—ending 880,000 710,000 a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round...
Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both...
Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credit to their customers through their own credit card operations. Information from the financial statements for both companies for two recent years is as follows (in millions): Xavier Lestrade Sales $8,500,000 $4,585,000 Credit card receivables—beginning 820,000 600,000 Credit card receviables—ending 880,000 710,000 a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT