Mifflin Co. reported the following for the current year: net sales of $60,000; cost of goods sold of $38,000; beginning balance in accounts receivable of $14,000; and ending balance in accounts receivable of $6,000. Compute (a) accounts receivable turnover and (b) days’ sales uncollected. Round to one decimal. Hint: Recall that accounts receivable turnover uses average accounts receivable and days’ sales uncollected uses the ending balance in accounts receivable.
Mifflin Co. reported the following for the current year: net sales of $60,000; cost of goods sold of $38,000; beginning balance in accounts receivable of $14,000; and ending balance in accounts receivable of $6,000. Compute (a) accounts receivable turnover and (b) days’ sales uncollected. Round to one decimal. Hint: Recall that accounts receivable turnover uses average accounts receivable and days’ sales uncollected uses the ending balance in accounts receivable.
Chapter1: Financial Statements And Business Decisions
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Mifflin Co. reported the following for the current year: net sales of $60,000; cost of goods sold of $38,000;
beginning balance in
Compute (a) accounts receivable turnover and (b) days’ sales uncollected. Round to one decimal. Hint:
Recall that accounts receivable turnover uses average accounts receivable and days’ sales uncollected uses
the ending balance in accounts receivable.
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