Shiplt Corporation reported the following rounded amounts (in millions): 2015 $ 5,160 (320) 2016 Accounts Receivable Allowance for Doubtful Accounts $ 5,455 (315) Accounts Receivable, Net of $ 5,140 $ 4,840 Allowance Net Sales (assume all on credit) $41,000 $39,500 Required: 1. Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.) times days Receivables Turnover Ratio Days to Collect 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2015 when the turnover was 9.7?

Shiplt Corporation reported the following rounded amounts (in millions): 2015 $ 5,160 (320) 2016 Accounts Receivable Allowance for Doubtful Accounts $ 5,455 (315) Accounts Receivable, Net of $ 5,140 $ 4,840 Allowance Net Sales (assume all on credit) $41,000 $39,500 Required: 1. Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.) times days Receivables Turnover Ratio Days to Collect 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2015 when the turnover was 9.7?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Provide Answer

A: Bad debt expense is an accounting term that represents the amount of money a company expects it…

Q: Use the following to answer questions 28-29: Accounts receivable Allowance Cash realizable value…

A: Allowance method:The allowance method, for debts predicts uncollectible accounts by estimating the…

Q: What is the receivables turnover?

A: Turnover means the is the amount of sales by the business. It is sometimes called as income of the…

Q: Need Help please let us

A: Detailed explanation:Accounts Receivable balance Dec 31, 2014$ 176200Less Net Realizable of Accounts…

Q: During 2022, $99000 of uncollectible accounts r 10% of the balance in receivables (percentage o

A: The allowance is a method for estimating and accounting for probable bad debts, and the Bad Debts…

Q: Merck & Company reported the following from its 2016 financial statements. $ millions Accounts…

A: ACCOUNTS RECEIVABLEAccounts Receivable are reported under the Non Current Assets section of the…

Q: At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $241,000, and the…

A: As per the given information: Beginning accounts receivable balance - $241,000 Balance in allowance…

Q: Pronghorn Corp.’s balance sheet at December 31, 2016, included the following. Note receivable…

A: Journal entries are the record of financial transactions in chronological order in a company's…

Q: The Forrester Corporation disclosed the following financial information (in millions) in its recent…

A: Accounts receivable turnover = Net sales / Average accounts receivable where, Average accounts…

Q: Bramble Corp.’s balance sheet at December 31, 2016, included the following. Note receivable…

A: Solution- S no Particulars Amount DR Amount CR 1 Accounts receivable------------------DR…

Q: Hopefully this is the last one, can you show me this one too? 3. The data presented below are for…

A: Accounts Receivable are those customer accounts to whom business has made credit sales and amount…

Q: receivable wance for doubtful accounts ns in 2025 include the following. 27,400 $212,600 counts…

A: Journal entries records the business financial transaction on the company books of accounts.

Q: Select financial information from Beca Inc. is shown below: Receivables less allowance for doubtful…

A: Average Account Receivable :— It is calculated by dividing sum of beginning accounts receivable…

Q: It also wrote off an account for $10,380. Prepare the journal entry for write-offs.

Q: Want the Correct

A: Step 1: Definition of Allowance for Doubtful Accounts: The allowance for doubtful accounts shows a…

Q: (Pro forma accounts receivable balance calculation) The accounts receivable for Pastors Brewing…

A: A cash collection budget is a crucial financial document that provides a detailed overview of the…

Q: I need the answer on number 15 only. Thanks 1.The 2017 year-end balances of Accounts Receivable and…

A: Since the student has asked for Part 15, only that has been solved in step 2.

Q: Carter & Evans reported the following rounded amounts (in millions): 2019 2018 Accounts…

A: ACCOUNT RECEIVABLE TURNOVER RATIO Account Receivable Turnover Ratio is the Ratio between Net Credit…

Q: The following information is related to December 31, 2024 balances. Accounts receivable Allowance…

A: Accounts receivable: It is a current asset of an organization. It is the amount due from customers…

Q: Need help with this Question

A: Allowance For Doubtful Accounts (AFDA):Allowance for doubtful accounts (AFDA) shows the estimated…

Q: At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $143,000, and the…

A: Assets Liabilities Equation: It is the balance sheet equation showing the relationship between the…

Q: The 2016 financial statements of Leggett & Platt, Inc. include the following information in a…

A: Account receivable is the amount which the business or company will receives from its customers or…

Q: At December 31, 2021, Concord Co. reported the following information on its balance sheet. Accounts…

A: Accounts Receivable turnover is an efficiency ratio which indicates the number of times a company…

Q: At December 31, 2021, Pina Co. reported the following information on its balance sheet. Accounts…

A: SOLUTION- JOURNAL IS THE COMPANY'S BOOK IN WHICH TRANSACTIONS ARE RECORDED IN CHRONOLOGICAL ORDER.

Q: A company is getting ready to publish their annual financial statements. They have the following…

A: Bad debts are the uncollectible accounts receivables on which credit sales has been made and amount…

Q: Question: In 2015, Warehouse 13 had net credit sales of $750,000. On January 1, 2015, Allowance for…

A: Definition of Allowance for Doubtful Accounts:The allowance for doubtful accounts shows a cumulative…

Q: Want Answer

A: Reference:Team, C. (2023c, December 4). Allowance for doubtful accounts. Corporate Finance…

Q: Suppose the 2022 financial statements of 3M Company report net sales of $23.1 billion. Accounts…

A: The accounts receivable turnover ratio determines the efficiency of the collection from its accounts…

Q: Compute the accounts receivable turnover and average collection period, assuming the expected…

A: Accounts Receivable turnover is an efficiency ratio which indicates the number of times a company…

Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

100%

Shiplt Corporation reported the following rounded amounts (in millions):
2016
2015
$ 5,455
(315)
$ 5,160
(320)
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of
$ 5,140
$ 4,840
Allowance
Net Sales (assume all on credit)
$41,000
$39,500
Required:
1. Determine the receivables turnover ratio and days to collect for 2016. (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
2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables
turnover, compared to 2015 when the turnover was 9.7?
O Improvement
Decline

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Use the following to answer questions 28-29: Accounts receivable Allowance Cash realizable value 12/31/2016 $525,000 (45,000) $480.000 During 2017, sales on account were $145,000 and collections on account were $86,000. Also during 2017; the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $54,000. 28. The change in the cash realizable value from the balance at 12/31/2016 to 12/31/2017 was a:. A) $50,000 B) $59,000. C) $42,000 D) $51,000 29. Bad debts expense for 2017 is: A) $17,000 B) $9,000 C) $54,000 D) $1,000
The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance for Doubtful Accounts of $11,783 (credit balance). The company’s total sales during 2019 were $8,350,200. Of these, $1,252,530 were cash sales the rest were credit sales. By the end of the year, the company had collected $6,291,700 of accounts receivable. It also wrote off an account for $10,380. Prepare the journal entry for collections. Account Names DR CR Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text. Blank 8. Fill in the blank, read surrounding text. Blank 9. Fill in the blank, read surrounding text. Blank 10. Fill in the blank, read surrounding text. Blank 11.…
Swifty Corp.’s balance sheet at December 31, 2016, included the following. Note receivable $660,000 Interest receivable 36,000 Accounts receivable 1,415,000 Less: Allowance for doubtful accounts receivable 95,000 1,320,000 $2,016,000 The following occurred in 2017. 1. Swifty made sales of $10,540,000. All sales were credit sales. Swifty allows some discounts for early payment of receivables and uses the gross method to record sales. 2. Customer accounts of $83,500 were written off during the year. 3. Accounts receivable of $10,640,000 were collected. Collections for the year included $200,000 of accounts on which 1% sales discounts were allowed. 4. $12,500 was received in payment of an account which was written off the books as worthless in 2016. 5. At year-end (December 31, 2017), Swifty estimated that its Allowance for Doubtful Accounts needed a balance of $73,000. This estimate is based on an analysis of…
Provide both Answer
Need help with this Question
A recent annual report for FedEx contained the following data: Numerator Denominator Numerator Denominator (dollars in thousands) Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. Note: Use 365 days a year. Enter your answers in thousands not in dollars. Current Year $ 9,416,000 293,000 $9,123,000 $ 69,703,000 Receivables Turnover Ratio Net sales Average net trade accounts receivable Receivables turnover Average Days Sales in Receivables 365 Previous Year $ 88,452,000 397,000 $ 88,055,000 365 1.43 0 times 255.24 days
A company has net credit sales of $499000 for the year and it estimates that uncollectible accounts will be 3% of its Account Receivables balance. If Allowance for Doubtful Accounts has a credit balance of $2000 prior to adjustment, its balance after adjustment will be a credit of $16970. $14970. $12970. $14910.
Need Help with This
Maple Leaf Foods Inc. reported the following selected information (in thousands) for the three years ended December 31, 2018, 2017, and 2016: 2018 2017 2016 Trade receivables (gross) $109,945 $90,862 $90,463 Allowance for doubtful accounts 1,305 5 5 Sales 3,495,519 3,522,226 3,331,812 (a) Calculate Maple Leaf’s receivables turnover and average collection period for 2018 and 2017. (Round answers to 1 decimal place, e.g. 52.5.) 2018 2017 Receivables turnover enter number of times rounded to 1 decimal place times enter number of times rounded to 1 decimal place times Average collection period enter days rounded to 1 decimal place days enter days rounded to 1 decimal place days
Please do not give solution in image format thanku
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,453,630, beginning accounts receivable balance of $587,900, and an ending accounts receivable balance of $623,450. A. Compute the accounts receivable turnover ratio and the number of days' sales in receivables ratio for 2018. Round answers to two decimal places. Accounts receivable turnover ratio fill in the blank 1 times Sales in receivables ratio fill in the blank 2 days B. What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of day’s sales ratio is 180 days? a. Millennial Manufacturing collects its accounts more quickly than its competitors. b. A lender may favour Millennial Manufacturing over its competitors because of its faster collection period. c. Without prior years’ data it is hard to tell if Millennial Manufacturing is really more efficient than its competitors. d. All of the above statements may be correct.
Shiplt Corporation reported the following rounded amounts (in millions): 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 11.2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 2019 2018 $ 5,355 $ 5,060 (265) (270) $ 5,090 $ 4,790 $ 49,000 $ 47,200 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