Exercise 9-17 Accounts receivable turnovere a10 The following information is from the annual financial statements of Raheem Company. (1) Compute it accounts receivable turnover for Year 2 and Year 3. (2) Assuming its competitor has a turnover of 11, is Raheem performing better or worse at collecting receivables than its competitor? Year 3 Year 2 Year 1 Net sales $405,140 $335,280 $388,000 Accounts receivable, net (year-end) 44,800 41,400 34,800
Exercise 9-17 Accounts receivable turnovere a10 The following information is from the annual financial statements of Raheem Company. (1) Compute it accounts receivable turnover for Year 2 and Year 3. (2) Assuming its competitor has a turnover of 11, is Raheem performing better or worse at collecting receivables than its competitor? Year 3 Year 2 Year 1 Net sales $405,140 $335,280 $388,000 Accounts receivable, net (year-end) 44,800 41,400 34,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.
- Use citations to cite any outside sources used.
- The original post should include at least three (3) sentences but no more than seven (7) sentences.
![Exercise 9-17 Accounts receivable turnovere A10
The following information is from the annual financial statements of Raheem Company. (1) Compute its
accounts receivable turnover for Year 2 and Year 3. (2) Assuming its competitor has a turnover of 11, is
Raheem performing better or worse at collecting receivables than its competitor?
Year 3
Year 2
Year 1
Net sales
$405,140 $335,280 $388,000
Accounts receivable, net (year-end)
44,800
41,400
34,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2F7604be1e-5a57-4b3a-8c5f-14bd053751fb%2Fythfu8_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-17 Accounts receivable turnovere A10
The following information is from the annual financial statements of Raheem Company. (1) Compute its
accounts receivable turnover for Year 2 and Year 3. (2) Assuming its competitor has a turnover of 11, is
Raheem performing better or worse at collecting receivables than its competitor?
Year 3
Year 2
Year 1
Net sales
$405,140 $335,280 $388,000
Accounts receivable, net (year-end)
44,800
41,400
34,800
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