The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Υ3 20Υ2 20Υ1 Accounts receivable, end of year $182,600 $197,000 $211,800 Sales on account 1,119,820 1,103,760 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 20Y3 20Y2 1. Accounts receivable turnover 6.1 5.6 x X days 65.1 X days 2. Number of days' sales in receivables 59.5 b. The collection of accounts receivable has improved . This can be seen in both the increase v in accounts receivable turnover and the decrease X in the collection period. Feedback V Check My Work a.1. Divide net sales by average accounts receivable. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) = 2. a.2. Divide average accounts receivable by average daily sales on account. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) - 2. Average daily sales on account = Net Sales - 365 days. b. Consider the relationship of the accounts involved. Consider the effects of the changes on the business. Learning Objective 3.
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Υ3 20Υ2 20Υ1 Accounts receivable, end of year $182,600 $197,000 $211,800 Sales on account 1,119,820 1,103,760 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 20Y3 20Y2 1. Accounts receivable turnover 6.1 5.6 x X days 65.1 X days 2. Number of days' sales in receivables 59.5 b. The collection of accounts receivable has improved . This can be seen in both the increase v in accounts receivable turnover and the decrease X in the collection period. Feedback V Check My Work a.1. Divide net sales by average accounts receivable. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) = 2. a.2. Divide average accounts receivable by average daily sales on account. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) - 2. Average daily sales on account = Net Sales - 365 days. b. Consider the relationship of the accounts involved. Consider the effects of the changes on the business. Learning Objective 3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Help me solve question 1 and 2
Transcribed Image Text:The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.
20Υ3
20Υ2
20Υ1
Accounts receivable, end of year
$182,600
$197,000
$211,800
Sales on account
1,119,820
1,103,760
a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year.
20Y3
20Y2
1. Accounts receivable turnover
6.1
5.6 x
X days
65.1 X days
2. Number of days' sales in receivables
59.5
b. The collection of accounts receivable has improved . This can be seen in both the increase v
in accounts receivable turnover and the decrease X
in the collection period.
Feedback
V Check My Work
a.1. Divide net sales by average accounts receivable. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) = 2.
a.2. Divide average accounts receivable by average daily sales on account. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) - 2. Average daily sales on account = Net Sales - 365 days.
b. Consider the relationship of the accounts involved. Consider the effects of the changes on the business.
Learning Objective 3.
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