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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              20Y1Accounts receivable, end of year            $ 725,000     $ 650,000     $600,000Sales on account                                     5,637,500      4,687,500a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days’ sales in receivables. Round to the nearest dollar and one decimal place.b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.                                                                     20Y3        20Y2              20Y1Accounts receivable, end of year            $ 725,000     $ 650,000     $600,000Sales on account                                     5,637,500      4,687,500a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days’ sales in receivables. Round to the nearest dollar and one decimal place.b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

FINANCIAL ACCOUNTING
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            $ 725,000     $ 650,000     $600,000
Sales on account                                     5,637,500      4,687,500
a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days’ sales in receivables. Round to the nearest dollar and one decimal place.
b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

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