Road Runner Express reported the following rounded amounts (in millions); 2018 $5,280 Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) 2019 $ 5,575 (375) $ 5,200 $ 44,500 (380) $ 4,900 $ 43,000 Required: 1. Determine the receivables turnover ratio and days to collect for 2019. 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared 2018, when the turnover was 10.2? Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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E8-16 (Algo) Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect [LO 8-4]
Road Runner Express reported the following rounded amounts (in millions):
2019
2018
$ 5,280
$ 5,575
(375)
(380)
$ 5,200
$ 4,900
$ 44,500 $ 43,000
Accounts Receivable.
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
Net Sales (assume all on credit)
Required:
1. Determine the receivables turnover ratio and days to collect for 2019.
2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to
2018, when the turnover was 10.2?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the receivables turnover ratio and days to collect for 2019. (Use 365 days in a year. Do not round intermediate
calculations. Round your final answers to 1 decimal place.)
Receivables Turnover Ratio
Days to Collect
times
days
Transcribed Image Text:E8-16 (Algo) Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect [LO 8-4] Road Runner Express reported the following rounded amounts (in millions): 2019 2018 $ 5,280 $ 5,575 (375) (380) $ 5,200 $ 4,900 $ 44,500 $ 43,000 Accounts Receivable. Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) Required: 1. Determine the receivables turnover ratio and days to collect for 2019. 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2018, when the turnover was 10.2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the receivables turnover ratio and days to collect for 2019. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.) Receivables Turnover Ratio Days to Collect times days
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