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Q1-1 What risks are present if you take too long to col- lect our accounts receivable?

Q1-1 What risks are present if you take too long to col- lect our accounts receivable?

FINANCIAL ACCOUNTING
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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**Q1-1.** What risks are present if you take too long to collect our accounts receivable? **Q1-2.** What are some analyses you could perform that would provide insight into how efficiently your company is collecting cash from customers? Are there any KPIs that would be appropriate here? **Q1-3.** In your opinion, what would be an appropriate benchmark for the average number of days sales outstanding (i.e., Accounts receivable/Sales × 365)? Would management want this number higher or lower?
Transcribed Image Text:**Q1-1.** What risks are present if you take too long to collect our accounts receivable? **Q1-2.** What are some analyses you could perform that would provide insight into how efficiently your company is collecting cash from customers? Are there any KPIs that would be appropriate here? **Q1-3.** In your opinion, what would be an appropriate benchmark for the average number of days sales outstanding (i.e., Accounts receivable/Sales × 365)? Would management want this number higher or lower?
**Q1-4. What are the total sales for 2020?** This question prompts learners to explore and determine the cumulative sales figures for the year 2020. When approaching this question, you may need to reference relevant sales data, graphs, or charts that outline quarterly or monthly sales records for the year in question. If graphs or datasets are present, it is essential to analyze and sum the appropriate data points to derive the total sales.
Transcribed Image Text:**Q1-4. What are the total sales for 2020?** This question prompts learners to explore and determine the cumulative sales figures for the year 2020. When approaching this question, you may need to reference relevant sales data, graphs, or charts that outline quarterly or monthly sales records for the year in question. If graphs or datasets are present, it is essential to analyze and sum the appropriate data points to derive the total sales.
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