The initial analysis should include the following:The ratio equationThe calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook. Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result or a result that needs improving.The original post should include at least 7 sentences Page 317Exercise 8-15 Liquid assets and accounts receivable e A10Barga Co.'s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-endbalances of accounts receivable follow: Year 1, $65,00o; and Year 2, $123,000.a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal.b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?

Days sales uncollected is a liquidity ratio. It measures the estimated number of days before…

Answered: Barga Co.'s net sales for Year 1 and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The initial analysis should include the following:

The ratio equation
The calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook.
Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income.
Then explain whether this is a good result or a result that needs improving.
The original post should include at least 7 sentences

Page 317
Exercise 8-15 Liquid assets and accounts receivable e A10
Barga Co.'s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-end
balances of accounts receivable follow: Year 1, $65,00o; and Year 2, $123,000.
a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal.
b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?

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