Ralph Lauren Corporation designs, markets, and distributes a variety of apparel, home decor,accessory, and fragrance products. The company's products include such brands as Poloby Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren, Polo Jeans Co., and Chaps.Polo Ralph Lauren reported the following (in thousands) for two recent years: For the Period EndingYear 2Year 1Sales$7,620,000$7,450,000Accounts receivable857,000800,000Assume that accounts receivable (in millions) were $607,000 at the beginning of Year 1.a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimalplaces.b. Compute the days' sales in receivables for Year 2 and Year 1. Use 365 days and roundto one decimal place.What conclusions can be drawn from these analyses regarding Ralph Lauren'sc.efficiency in collecting receivables?

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Answered: Ralph Lauren Corporation designs,…

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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Accounts receivables = $6,500 Net Sales = $18,122 Use 360 days when when calculating average days collection
Accounts Receivable Turnover and Days' Sales in Receivables Rosco Co. manufactures and markets food products throughout the world. The following sales and receivable data were reported by Rosco for two recent years: Year 2 Year 1 Sales $7,259,850 $6,860,175 Accounts receivable 719,050 704,450 Assume that the accounts receivable were $602,250 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to one decimal place. Year 2: Year 1: b. Compute the days' sales receivables at the end of Year 2 and Year 1. Use 365 days per year your calculations. Round your answers to one decimal place. Year 2: days Year 1: days C. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) indicates a(n) - in the efficiency of collecting accounts receivable and is a(n) change. The change in the days' sales in receivables change. Check My Work Previous
ccounts receivable turnover and days’ sales in receivables Financial statement data for years ending December 31 for Schultze-Solutions Company follow: 20Y2 20Y1 Sales $1,848,000 $1,881,000 Accounts receivable: Beginning of year 195,300 184,700 End of year 224,700 195,300 a. Determine the accounts receivable turnover for 20Y2 and 20Y1. If required, round the final answers to one decimal place. AccountsReceivableTurnover 20Y2 fill in the blank 1 20Y1 fill in the blank 2 b. Determine the days’ sales in receivables for 20Y2 and 20Y1. Use 365 days, if required round the final answers to one decimal place. Days’ Salesin Receivables 20Y2 fill in the blank 3 days 20Y1 fill in the blank 4 days
Accounts Receivable Turnover and Average Collection Period VanPoole Corporation disclosed the following financial information (in millions) in its recent annual report: Year 1 Year 2 $167,096 $181,662 33,350 32,870 32,870 32,635 Net sales Beginning accounts receivable (net) Ending accounts receivable (net) a. Calculate the accounts receivable turnover ratio for both years. b. Calculate the average collection period for both years. Notes: 1. Round all answers to one decimal place. 2. Use rounded answer from part a. to compute the average collection period. Year 1 Year 2 a. Accounts receivable turnover b. Average collection period (days) 0 0 0 0 c. Is the company's accounts receivable management improving or deteriorating?
Account Title Beginning Balance Ending Balance Accounts receivable $28,600 $40,500 Allowance for doubtful accounts 1,760 2,160 Notes receivable 47,200 47,200 Interest receivable 930 4,234 The note receivable has a two-year term with a 7.00 percent interest rate. What amount of interest revenue was recognized during the period? How much cash was collected from interest? Please explain how you find the cash received for interest
12
Accounts receivable turnover and days’ sales in receivables For two recent years, Robinhood Company reported the following: 20Y9 20Y8 Sales $7,980,000 $6,726,000 Accounts receivable: Beginning of year 610,000 530,000 End of year 590,000 610,000 a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place. 20Y8: 20Y9: b. Determine the days’ sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place. 20Y8: days 20Y9: days c. Are the changes in the accounts receivable turnover and days’ sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?
Analyzing Accounts ReceivableThe following information is taken from the annual report of Coca-Cola Enterprises, Inc.: (amounts in millions) Year 1 Year 2 Net sales $19,058 $19,606 Accounts receivable (net) 1,884 1,802 Calculate the receivable turnover ratio and the receivable collection period for Year 1 and Year 2. Round your answer to two decimal places. Year 1 Year 2 Receivable turnover ratio Receivable collection period days days How much additional cash flow from operations could Coca-Cola Enterprises generate in Year 2 if it could reduce its receivable collection period to just 30 days?Round your final answer to the nearest million dollar. Year 2 Additional cash flow million
How do I find the turnover and number of days' sales in receivables?
The year-end balance sheet of Manor, Inc., includes the following stockholders’ equity section(with certain details omitted):Stockholders’ equity:10% cumulative preferred stock, $100 par value,authorized 100,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,400,000Common stock, $2 par value, authorized2,000,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400,000Additional paid-in capital: common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,800,000Donated capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,160,000Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,160,000 InstructionsFrom this information, compute answers to the…
Accounts Receivable Analysis A company reports the following: Sales $1,292,830 Average accounts receivable (net) 56,210 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables fill in the blank 2 days
Use the following to answer questions 8 – 11 The following information pertains to RC, Inc. for the month of December: $900,000 38,500 Credit sales Accounts payable 55,400 400 credit Accounts receivable Allowance for Uncollectible accounts Cash sales 300,000 RC uses the percent of receivables method and estimates it will not collect 5% of accounts receivable. Chapter 5 Page 5-1 8. $ Determine the ending balance for the Allowance for Uncollectible Accounts 9. $ Determine the appropriate amount to record for Bad Debt expense 10. $ amount to record for Bad Debt expense Assuming the Allowance for Uncollectible accounts had a $700 debit balance, determine the

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