Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years: Year 2 Year 1 Sales $1,904,205 $1,877,925 Accounts receivable 175,200 $167,900 Assume that accounts receivable were $189,800 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. Year 2: fill in the blank 1 Year 1: fill in the blank 2 b. Compute the days' sales in receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations. Year 2: fill in the blank 3 days Year 1: fill in the blank 4 days c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) ______ in the efficiency of collecting accounts receivable and is a(n) ______ change. The change in the days' sales in receivables indicates a(n) ______ change.
Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years: Year 2 Year 1 Sales $1,904,205 $1,877,925 Accounts receivable 175,200 $167,900 Assume that accounts receivable were $189,800 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. Year 2: fill in the blank 1 Year 1: fill in the blank 2 b. Compute the days' sales in receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations. Year 2: fill in the blank 3 days Year 1: fill in the blank 4 days c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) ______ in the efficiency of collecting accounts receivable and is a(n) ______ change. The change in the days' sales in receivables indicates a(n) ______ change.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years:
| Year 2 | Year 1 | |||
| Sales | $1,904,205 | $1,877,925 | ||
| 175,200 | $167,900 |
Assume that accounts receivable were $189,800 at the beginning of Year 1.
a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place.
| Year 2: | fill in the blank 1 |
| Year 1: | fill in the blank 2 |
b. Compute the days' sales in receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations.
| Year 2: | fill in the blank 3 days |
| Year 1: | fill in the blank 4 days |
c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) ______ in the efficiency of collecting accounts receivable and is a(n) ______ change. The change in the days' sales in receivables indicates a(n) ______ change.
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