Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y2 20Y3 Accounts receivable, end of year $725,000 5,637,500 Sales on account 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. 1. Accounts receivable turnover 2. Number of days' sales in receivables b. The collection of accounts receivable has $650,000 4,687,500 20Y1 $600,000 20Y3 20Y2 days This can be seen in both the days in accounts receivable turnover and the in the collection period.
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y2 20Y3 Accounts receivable, end of year $725,000 5,637,500 Sales on account 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. 1. Accounts receivable turnover 2. Number of days' sales in receivables b. The collection of accounts receivable has $650,000 4,687,500 20Y1 $600,000 20Y3 20Y2 days This can be seen in both the days in accounts receivable turnover and the in the collection period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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
$725,000 $650,000
5,637,500 4,687,500
20Y1
$600,000
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.
Accounts receivable, end of year
Sales on account
1. Accounts receivable turnover
2. Number of days' sales in receivables
b. The collection of accounts receivable has
20Y3
20Y2
days
This can be seen in both the
days
in accounts receivable turnover and the
in the collection period.
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