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 Receivable Turnover 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' Sales in 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.
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 Receivable Turnover 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' Sales in 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following information was taken from the books of Olmeck, Inc.
|
Year 2
|
Year 1
|
|
| Sales | $956,000 | $992,000 |
| 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 Receivable Turnover |
|
| 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' Sales in 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.
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