1. Determine the receivables turnover ratio and days to collect for 2019. 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2018, when the turnover was 9.7? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the receivables turnover ratio and days to collect for 2019. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.) Receivables Turmover Ratio times Days to Collect days
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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E8-16 (Algo) Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect [LO 8-4]
Fast & Now Incorporated reported the following rounded amounts (in millions):
2019
$ 5,535
(355)
2018
$ 5,240
(360)
$ 4,880
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
$ 5,180
Net Sales (assume all on credit)
$ 43,500
$ 42,000
Required:
1. Determine the receivables turnover ratio and days to collect for 2019.
2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to
2018, when the turnover was 9.7?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine the receivables turnover ratio and days to collect for 2019. (Use 365 days in a year. Do not round intermediate
calculations. Round your final answers to 1 decimal place.)
Receivables Turnover Ratio
times
Days to Collect
days
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96b650d0-94c1-4bf9-b8c8-281058250080%2F5f865aab-ca95-464e-9360-24b9c0c12d96%2Fjr43gw_processed.png&w=3840&q=75)
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