Obj. 3 The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30. Accounts receivable, end of year Sales Year 3 SHOW ANSWER $ 450,000 2,640,000 Year 2 $ 375,000 1,957,500 Year 1 $300,000 a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the days' sales in receivables. Round to nearest dollar and one decimal place. b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

Obj. 3 The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30. Accounts receivable, end of year Sales Year 3 SHOW ANSWER $ 450,000 2,640,000 Year 2 $ 375,000 1,957,500 Year 1 $300,000 a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the days' sales in receivables. Round to nearest dollar and one decimal place. b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

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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