Accounts receivable turnover and days’ sales in receivablesFor two recent years, Robinhood Company reported the following: 20Y920Y8Sales$8,370,000$6,961,500Accounts receivable: Beginning of year630,000560,000End of year610,000630,000a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place.20Y8:20Y9: b. Determine the days’ sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place.20Y8: 20Y9: c. Are the changes in the accounts receivable turnover and days’ sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?

Accounts receivable turnover = Net Credit sales / Average account receivable Accounts receivable…

Answered: Accounts receivable turnover and days’…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Accounts receivable turnover and days’ sales in receivables

For two recent years, Robinhood Company reported the following:

20Y9 20Y8

Sales $8,370,000 $6,961,500

Accounts receivable:

Beginning of year 630,000 560,000

End of year 610,000 630,000

a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place.

20Y8:

20Y9:

b. Determine the days’ sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place.

20Y8:

20Y9:

c. Are the changes in the accounts receivable turnover and days’ sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions