**Mathis Incorporated and Hashey Companies: Receivables Management Analysis**Mathis Incorporated and Hashey Companies are two of the largest and most successful toymakers globally. The following analysis examines their ability to collect on credit sales using data from their annual reports (amounts in millions).**Financial Data:**| | Mathis | Hashey ||----------------------|----------------------|----------------------|| **Fiscal Year Ended:** | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 || **Net Sales** | $5,656 | $5,131 | $5,718 | $3,902 | $3,768 | $3,822 || **Accounts Receivable** | 1,158 | 764 | 890 | 982 | 1,062 | 634 || **Allowance for Doubtful Accounts** | 21 | 24 | 25 | 30 | 32 | 31 || **Accounts Receivable, Net of Allowance** | 1,137 | 740 | 865 | 952 | 1,030 | 603 |**Required:**1. **Calculate the Receivables Turnover Ratios and Days to Collect** for Mathis and Hashey for 2018 and 2017. **TIP:** Use average Accounts Receivable, Net of Allowance for calculations.2. **Analyze Conversion Speed:** - **2-a.** Identify which company was quicker to convert its receivables into cash in 2018. - **2-b.** Identify which company was quicker to convert its receivables into cash in 2017.**Solution Input:**- Use the respective tabs to enter your solution for each requirement.**Receivables Turnover and Days to Collect Data:***For 2018:*- **Mathis Receivables Turnover Ratio:** 6.0- **Hashey Receivables Turnover Ratio:** 6.4*For 2017:*- **Mathis Receivables Turnover Ratio:** - **Hashey Receivables Turnover Ratio:** **Calculation Notes:**- Use average Accounts Rece

The efficiency with which a firm is able to collect on its receivables or the credit it gives to…

Answered: Mathis Incorporated and Hashey…

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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can you please help me answer these questions... Aardvark Company sells merchandise only on credit. For the year ended December 31, 2019, the following data are available: Sales (all on credit) $1,200,000 Accounts Receivable, January 1, 2019 225,000 Allowance for doubtful accounts, January 1, 2019 (credit) 15,000 Cash collections during 2019 1,050,000 Accounts written off as uncollected (default) during 2019 10,000 Determine the balance of Accounts Receivable at December 31, 2019. Assume that the company estimates bad debts at 2% of credit sales. What amount will the company record as bad debt expense for 2019? What journal entry would Aardvark prepare to record bad debt expense for 2019 (related to part 2)? Assume that the company estimates bad debts based on the aging method, and the aging schedule estimates that $30,100 of the year-end accounts receivable will be uncollected. What amount will the company record as bad debt expense for 2019? What…
The company wants to assess the account receivable outstanding at the end of December 2016. During the year, total credit sales are 1,000,000 USD. The account receivable outstanding at the end of December 2015 is 20,000 USD and at the end of December 2016 is 25,000 USD. Assess the Accounts Receivable Payment Period of the company. The Accounts Receivable Payment Period is
Faeber Textile Company frequently factors its accounts receivable. During 2019, Faeber made credit sales of $100,000 to customers, under terms of 2/10, n/30. Faeber records its credit sales using gross price. In 2019, Faeber sold $70,000 of these receivables to a factor. The factor remitted 90% of the accounts receivable factored and charged a 12% commission on the gross amount of the factored receivables. The factoring agreement also requires Faeber to be responsible for any cash discounts taken by customers upon payment of the factored receivables. Faeber is charged for these cash discounts upon reimbursement by the factor. During 2019, the factor collected the remaining amount of the factored receivables, minus the 2% discount on 94% of the collected receivables, and returned the balance owed to Faeber. Faeber collected the remaining amount of the unfactored accounts receivable, minus the 2% discount on 96% of the collected receivables. Required: Prepare all the journal entries…
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Mr. Husker's Tuxedos Corp. ended the year 2021 with an average collection period of 35 days. The firm's credit sales for 2021 were $56.4 million. What is the year-end 2021 balance in accounts receivable for Mr. Husker's Tuxedos? (Enter your answer in dollars not in millions.) Accounts receivable
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A company has net credit sales of $499000 for the year and it estimates that uncollectible accounts will be 3% of its Account Receivables balance. If Allowance for Doubtful Accounts has a credit balance of $2000 prior to adjustment, its balance after adjustment will be a credit of $16970. $14970. $12970. $14910.
(8 Problems 1) On January 1, 2021, Cali Consulting has a $110,000 balance in accounts receivable and a $0 balance in the Allowance for Uncollectible Accounts. During 2021, Cali provides $205,000 of service on account. The company collected $190,000 cash from Accounts Receivable. Uncollectible accounts are estimated to be 3% of sales on account. a. What is the amount of uncollectible accounts expense recognized in 2021? b. What is the amount of cash flows from Operating activities that would appear on the 2021 Cash Flow statement? Show the impact (with amounts) of each of the following items on the horizontal C. Oquation. For the asset section, name the specific accounts impacted. i. Record Sales during the year on account of $205,000. ii. Show the impact of $190,000 cash collected during the year. ii. Establish an Allowance for Uncollectible Accounts at year-end. 3. Study guide - Chapter 5 (with solutions).docx O A 69°F P. f5 f12 6J prt sc I14 &
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Luna Company reported the following figures: 2020 2019 Net Credit Sales Account receivables at end of year $572,000 $38,700 $600,000 $46,100 Required: 1) Compute Luna's collection period of receivables for 2020. (Round to the nearest day) 2) Suppose Luna's normal credit terms for a sale on account are "2/10, n/30". How well does Luna's collection period compare to the company's credit terms? Is this good or bad for Luna Company?
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