Page 317 Exercise 8-15 Liquid assets and accounts receivable O A10 Barga Co.'s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $65,00o; and Year 2, $123,000. a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?
Page 317 Exercise 8-15 Liquid assets and accounts receivable O A10 Barga Co.'s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $65,00o; and Year 2, $123,000. a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.4BE: Accounts receivable analysis A company reports the following: Sales 3,150,000 Average accounts...
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The initial analysis should include the following:
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- Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income.
- Then explain whether this is a good result or a result that needs improving.
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![Page 317
Exercise 8-15 Liquid assets and accounts receivable e A1 0
Barga Co.'s net sales for Year 1 and Year 2 are $730,00o0 and $1,095,000, respectively. Its year-end
balances of accounts receivable follow: Year 1, $65,00o; and Year 2, $123,000.
a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal.
b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2F223b4cd2-8954-4e5d-804f-d4f8361203a0%2Fqoejetd_processed.png&w=3840&q=75)
Transcribed Image Text:Page 317
Exercise 8-15 Liquid assets and accounts receivable e A1 0
Barga Co.'s net sales for Year 1 and Year 2 are $730,00o0 and $1,095,000, respectively. Its year-end
balances of accounts receivable follow: Year 1, $65,00o; and Year 2, $123,000.
a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal.
b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?
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