A company reports the following: Sales Average accounts receivable (net) $4,000,000 200,000 Determine (a) the accounts receivable turnover and (b) 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. I a. Accounts receivable turnover b. Number of days' sales in receivables days
A company reports the following: Sales Average accounts receivable (net) $4,000,000 200,000 Determine (a) the accounts receivable turnover and (b) 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. I a. Accounts receivable turnover b. Number of days' sales in receivables days
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 6E: The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal...
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![PE.17-04B-Accounts
Receivable Analysis
A company reports the following:
Sales
Average accounts receivable (net)
$4,000,000
200,000
Determine (a) the accounts receivable turnover and (b) 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.
a. Accounts receivable turnover
b. Number of days' sales in receivables
days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06c39eee-1f9a-4e99-9392-10a12cd0deda%2F195fd568-32dd-451a-8699-a27591e5948c%2F9gpfh7i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PE.17-04B-Accounts
Receivable Analysis
A company reports the following:
Sales
Average accounts receivable (net)
$4,000,000
200,000
Determine (a) the accounts receivable turnover and (b) 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.
a. Accounts receivable turnover
b. Number of days' sales in receivables
days
![The following data were taken from the balance sheet of Nilo Company at the end of two
recent fiscal years:
Current assets:
Cash
Marketable securities
Accounts and notes receivable (net)
Inventories
Prepaid expenses
Total current assets
Current liabilities:
Accounts and notes payable
(short-term)
Accrued liabilities
Total current liabilities
Current Year
1. Working capital
2. Current ratio
3. Quick ratio
$347,700
402,600
164,700
603,900
311,100
$1,830,000
Current
Year
$353,800
256,200
$610,000
Previous Year
$254,400
286,200
95,400
420,300
268,700
$1,325,000
Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick
ratio. Round ratios to one decimal place.
$371,000
159,000
$530,000
Previous
Year](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06c39eee-1f9a-4e99-9392-10a12cd0deda%2F195fd568-32dd-451a-8699-a27591e5948c%2Fzzo105b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following data were taken from the balance sheet of Nilo Company at the end of two
recent fiscal years:
Current assets:
Cash
Marketable securities
Accounts and notes receivable (net)
Inventories
Prepaid expenses
Total current assets
Current liabilities:
Accounts and notes payable
(short-term)
Accrued liabilities
Total current liabilities
Current Year
1. Working capital
2. Current ratio
3. Quick ratio
$347,700
402,600
164,700
603,900
311,100
$1,830,000
Current
Year
$353,800
256,200
$610,000
Previous Year
$254,400
286,200
95,400
420,300
268,700
$1,325,000
Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick
ratio. Round ratios to one decimal place.
$371,000
159,000
$530,000
Previous
Year
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