### Armour Sports: Annual Account Balances AnalysisThe following annual account balances are from Armour Sports at year-end, December 31:| | Year 2 | Year 1 ||---------------------|-----------|-----------|| **Accounts receivable** | **$41,028** | **$34,850** || Net sales | $455,411 | $362,239 |#### ObjectiveComplete the table below to calculate the number of days' sales uncollected for Year 1 and Year 2. **Do not round intermediate calculations. Round your "Days' Sales Uncollected" to one decimal place.**### Days' Sales Uncollected Calculation Table:| | Days' Sales Uncollected ||----------------------|---------------------------------------------------------------------|| | Choose Numerator: / Choose Denominator: x Days = Days' Sales Uncollected || **Year 2:** | / x = Days' sales uncollected || **Year 1:** | / x = Days' sales uncollected |#### Explanation of Concepts- **Accounts Receivable:** This represents the money owed to the company by its customers for sales made on credit.- **Net Sales:** This is the revenue from sales of goods or services, minus returns, allowances, and discounts.- **Days' Sales Uncollected:** This metric measures the average number of days it takes a company to collect payment after a sale has been made. It is calculated as:\[ \text{Days’ Sales Uncollected} = \left( \frac{\text{Accounts Receivable}}{\text{Net Sales}} \right) \times \text{Number of Days} \]The typical number of days used in this calculation is 365 (for a year).By completing and analyzing this table, you can understand how efficiently Armour Sports manages its accounts receivable and how well it converts its sales into cash over the years.

INTRODUCTION: Net sales are a company's revenue after all deductions have been made. When analyzing…

The following annual account balances are from Armour Sports at December 31. Year 1 $ 34,850 362,239 Accounts receivable Net sales Year 2 $ 41,028 455,411 a. Complete the below table to calculate the number of days' sales uncollected for the Year 1 and Year 2. (Do not round intermed calculations. Round your "Days' Sales Uncollected" to 1 decimal place.) Year 2: Year 1: Choose Numerator: I 1 1 1 Days' Sales Uncollected Choose Denominator: X Days X X X = = 11 Days' Sales Uncollected Days' sales uncollected days days

The following annual account balances are from Armour Sports at December 31. Year 1 $ 34,850 362,239 Accounts receivable Net sales Year 2 $ 41,028 455,411 a. Complete the below table to calculate the number of days' sales uncollected for the Year 1 and Year 2. (Do not round intermed calculations. Round your "Days' Sales Uncollected" to 1 decimal place.) Year 2: Year 1: Choose Numerator: I 1 1 1 Days' Sales Uncollected Choose Denominator: X Days X X X = = 11 Days' Sales Uncollected Days' sales uncollected days days

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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