The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y320Y220Y1Accounts receivable, end of year$120,200 $128,000 $134,800 Sales on account719,780 670,140 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.

Name: The following data are taken from the financial statements of Sigmon I
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Description: The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y320Y220Y1Accounts receivable, end of year$120,200 $128,000 $134,800 Sales on account719,780 670,140 a. For 20Y2 and 20Y3, determine (1)

Accounts receivable turnover indicate the effectiveness of the company in recovering receivable amount from the debtors.Part 1: Average accounts receivable for 20Y2 is computed as follow: Average receivable turnover for 20Y2 is computed as follow: Average accounts receivable for 20Y3 is computed as follow: Average receivable turnover for 20Y3 is computed as follow:Part 2: Days’ sales in receivables for 20Y2 are computed as follow: Days’ sales in receivables for 20Y3 are computed as follow:

Answered: The following data are taken from the…

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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The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.

	20Y3	20Y2	20Y1
Accounts receivable, end of year	$120,200		$128,000	$134,800
Sales on account	719,780		670,140

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.

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