Blige Corporation had sales revenue of $12,000,000 in 2019 and $15,000,000 in 2020. Accounts receivable were $1,800,000 at the end of 2019 and $2,000,000 at the end of 2020. 5. Required (a) Calculate the accounts receivable turnover ratio for 2019 and 2020. (b) Has the management of accounts receivable improved or worsened from 2019 to 2020? (c) What are the advantages and disadvantages of selling goods on credit? (d) How much cash did Blige Corporation collect from its customers in 2020? (e) If sales in 2021 were expected to be $22,500,000, what would you expect accounts receivable to be at the end of 2021?

Blige Corporation had sales revenue of $12,000,000 in 2019 and $15,000,000 in 2020. Accounts receivable were $1,800,000 at the end of 2019 and $2,000,000 at the end of 2020. 5. Required (a) Calculate the accounts receivable turnover ratio for 2019 and 2020. (b) Has the management of accounts receivable improved or worsened from 2019 to 2020? (c) What are the advantages and disadvantages of selling goods on credit? (d) How much cash did Blige Corporation collect from its customers in 2020? (e) If sales in 2021 were expected to be $22,500,000, what would you expect accounts receivable to be at the end of 2021?

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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