Below are amounts (in millions) from three companies' annual reports.BeginningAccountsReceivableEnding AccountsReceivableNet SalesWalCoTarMart$1,815$2,762$322,4276,1666,69467,878CostGet62966568,963Required:1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet.2. Which company appears most efficient in collecting cash from sales?Complete this question by entering your answers in the tabs below.Required 1Required 2Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Enter yourrounded to 1 decimal place.)WalCoTarMartCostGetChoose NumeratorReceivables Turnover RatioChoose DenominatorAverage Collection PeriodChoose NumeratorChoose Denominator=Receivables turnover ratiotimestimestimes=Average collection period

Step 1:Required- 1: -Receivables turnover ratio1- WallCo First, calculate the average accounts…

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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 following information is from the annual financial statements of Raheem Company. Year 3 $ 430,000 28,400 Year 2 $361,000 26, 200 Net sales Accounts receivable, net (year-end) (1) Compute its accounts receivable turnover for Year 2 and Year 3. (2) Assuming its competitor has a turnover of 23.6, is Raheem performing better or worse at collecting receivables than its competitor? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its accounts receivable turnover for Year 2 and Year 3. Year 2: Year 3: Choose Numerator: 1 1 Accounts Receivable Turnover Choose Denominator: = II = 11 Year 1 $ 420,000 22,900 = Accounts Receivable Turnover Accounts receivable turnover times times
The following information is available for Newport Company and Jasper Incorporated at December 31: Jasper Incorporated $ 111,000 Accounts Accounts receivable Allowance for doubtful accounts Sales revenue Newport Company $ 86,000 22,800 632,000 Accounts receivable turnover Average collection period 24,800 885,000 Required: a. What is the accounts receivable turnover for each of the companies? Note: Round your answers to 1 decimal place. b. What is the average days to collect the receivables? Note: Use 365 days in a year. Do not round intermediate calculations. Round your answers to the nearest whole number. Newport Company Jasper Incorporated times times days days
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A company reports the following: Sales $890,600 Average accounts receivable (net) 44,530 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 20 b. Number of days' sales in receivables 18 X days
Accounts Receivable Analysis The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30. Year 3 Year 2 Year 1 Accounts receivable, end of year $ 450,000 $ 375,000 $300,000 Sales 2,640,000 1,957,500 a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the days' sales in receivables. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Year 3 Year 2 1. Accounts receivable turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in receivables fill in the blank 3 days fill in the blank 4 days
westigate Paragraph S a. Accounts receivable turnover b. Number of days' sales in receivables Accounts receivable, end of year Sales on account EX.17-09.ALGO - Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. 1. Accounts receivable turnover F5 2. Number of days' sales in receivables 2013 F6 W6-Financial Ratio Analysis - Exercise #1.docx Q Search 20Y2 $182,600 $197,000 1,043,900 1,001,560 For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 20Y3 F7 20 8 18.3 F8 I Styles days F9 20Y1 $211,800 Days prt sc F10 20Y2 DALL home F11 W Days end F12 insert
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The following information was taken from the books of Olmeck, Inc. Year 2 Year 1 Sales $956,000 $992,000 Accounts receivable: Beginning of the year 120,500 136,400 End of the year 110,000 120,500 a. Determine the accounts receivable turnover for Year 2 and Year 1. Round your answers to one decimal place. Accounts ReceivableTurnover Year 2 fill in the blank 1 Year 1 fill in the blank 2 b. Determine the number of days’ sales in receivables for Year 2 and Year 1. Round your answers to one decimal place. Assume 365 days per year. Number of Days' Salesin Receivables Year 2 fill in the blank 3 days Year 1 fill in the blank 4 days c. The industry average for the accounts receivable turnover is 8.0. How does Olmeck, Inc. compare? In Year 2 Olmeck was the industry average. In Year 1, Olmeck was the industry average.
A company reports the following: Sales $572,320Average accounts receivable (net) 20,440
Based on the following data, what is the accounts receivable turnover? Sales on account during year $545,555 Cost of goods sold during year 200,188 Accounts receivable, beginning of year 48,147 Accounts receivable, end of year 54,388 Inventory, beginning of year 90,742 Inventory, end of year 119,266
se the following selected financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Year Net Credit Sales Ending Accounts Receivable 2017 $687,430 $332,250 2018 705,290 362,450 2019 769,500 403,650 A. Compute the number of days’ sales in receivables ratios for 2018 and 2019. Round your answers to two decimal places. 2018 fill in the blank 1 days 2019 fill in the blank 2 days B. Using the sales in accounts receivable, choose the statement that most closely describes the company's management of its receivables. a. The company collects its accounts slowly, and the days are increasing. b. This may be leave the company unable to pay current debt owed to a lender. c. The company may need to be more aggressive with its receivable collection procedures. d. All of the above statements may be correct.
A company reports the following: Line Item Description Amount Sales $235,060 Average accounts receivable (net) 51,100 Determine (a) the accounts receivable turnover and (b) the days’ sales in receivables. When required, round your answers to one decimal place. Assume a 365-day year. Line Item Description Answer a. Accounts receivable turnover b. Days' Sales in Receivables

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