Answered: An analyst would like to evaluate… | bartleby

An analyst would like to evaluate Lenovo Group’s effi ciency in collecting its trade accounts receivable during the fi scal year ended 31 March 2010 (FY2009). Th e analystgathers the following information from Lenovo’s annual and interim reports:US$ in Th ousandsTrade receivables as of 31 March 2009 482,086Trade receivables as of 31 March 2010 1,021,062Revenue for year ended 31 March 2010 16,604,815Calculate Lenovo’s receivables turnover and number of days of sales outstanding(DSO) for the fi scal year ended 31 March 2010.

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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An analyst would like to evaluate Lenovo Group’s effi ciency in collecting its trade accounts receivable during the fi scal year ended 31 March 2010 (FY2009). Th e analyst
gathers the following information from Lenovo’s annual and interim reports:
US$ in Th ousands
Trade receivables as of 31 March 2009 482,086
Trade receivables as of 31 March 2010 1,021,062
Revenue for year ended 31 March 2010 16,604,815
Calculate Lenovo’s receivables turnover and number of days of sales outstanding
(DSO) for the fi scal year ended 31 March 2010.

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Princeton's detailed age analysis of trade receivables at 31 December 2020 shows the following: Customername Totaloutstanding £ Creditlimit £ 0-30days £ 31-60days £ 61-90days £ Over 90days £ A. Ames 16200 15000 2000 8700 2500 3000 B.Bristow 18300 25000 18300 - - - C.Chen 4700 4800 - 2000 2700 - TOTAL 39200 - 20300 10700 5200 3000 Notes:• The company offers 30 days credit to its customers.• The credit is offered to the customers based on words of mouth• Ames is disputing the quality of some of the goods and refusing to pay, no decision hasbeen made yet (£3,000 over 90 days)• Chen has just put in an order for £5,000, he is a good friend of the directorRequired:What are the key points arising from the credit controller's review in respect of each tradereceivable balance and what suggestions can be made to improve the aged analysis report?
Amounts owing by customers amounted to £650,000 at 31 December 2020. The business sets the provision for doubtful debts at 2.5% of trade receivables. The provision for doubtful debts at 31 December 2020 amounted to £19,340.The final adjustment relating to doubtful debts in the accounts for the year ended 31December 2020 will be:a) Dr Doubtful debts charge 16,250 Cr Trade receivables 16,250b) Dr Doubtful debts charge 3,090 Cr Doubtful debts provision 3,090c) Dr Doubtful debts provision 3,090 Cr Doubtful debts charge 3,090d) Dr Doubtful debts charge 16,250 Cr Doubtful debts provision 16,250
Cassowary Corporation’s balance sheet at December 31, 2016 included a $20,400 account receivable from Quail Corporation of Australia. The account receivable is denominated as 30,000 Australian dollars (A$). Assuming no entries have been made since 12/31/2016, what single entry should Cassowary make on January 16, 2017 when the account receivable is collected and the exchange rate for A$ is $.67? Select one: a. Cash (fc) 20,100 Accounts Receivable (fc) 20,100 b. Cash (fc) 20,100 Exchange Loss 300 Accounts Receivable (fc) 20,400 c. Cash (fc) 20,400 Accounts Receivable (fc) 20,400 d. Cash (fc) 20,700 Accounts Receivable (fc) 20,400 Exchange Gain 300

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