Homework Help is Here – Start Your Trial Now!
Business
Accounting
he following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y2 $650,000 4,687,500 20Y3 $725,000 5,637,500 For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round interim calculations to one decimal place. Assume a 365-day year. ccounts receivable, end of year ales on account 20Y1 $600,000

he following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y2 $650,000 4,687,500 20Y3 $725,000 5,637,500 For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round interim calculations to one decimal place. Assume a 365-day year. ccounts receivable, end of year ales on account 20Y1 $600,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

a

Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y2 $650,000 4,687,500 20Y3 $725,000 5,637,500 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) 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. Accounts receivable, end of year Sales on account 20Y1 $600,000 1. Accounts receivable turnover 2. Number of days' sales in receivables b. The collection of accounts receivable has improved 20Y3 20Y2 7.8 7.2 365 days 365 days This can be seen in both the decrease in accounts receivable turnover and the decrease in the collection
Transcribed Image Text:Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y2 $650,000 4,687,500 20Y3 $725,000 5,637,500 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) 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. Accounts receivable, end of year Sales on account 20Y1 $600,000 1. Accounts receivable turnover 2. Number of days' sales in receivables b. The collection of accounts receivable has improved 20Y3 20Y2 7.8 7.2 365 days 365 days This can be seen in both the decrease in accounts receivable turnover and the decrease in the collection
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS