The following information was taken from the books of Olmeck, Inc. Sales Accounts receivable: Beginning of the year End of the year Year 2 Year 2 $956,000 Turnover Year 2 Accounts Receivable 120,500 110,000 a. Determine the accounts receivable turnover for Year 2 and Year 1. Round your answers to one decimal place. Year 1 $992,000 136,400 120,500 Year 1 b. Determine the number of days' sales in receivables for Year 2 and Year 1. Round your answers to one decimal place. Assume 365 days per year. Number of Days' Sales in Receivables days days Year 1 c. The industry average for the accounts receivable turnover is 8.0. How does Olmeck, Inc. compare? In Year 2 Olmeck was the industry average. In Year 1, Olmeck was the industry average.

The following information was taken from the books of Olmeck, Inc. Sales Accounts receivable: Beginning of the year End of the year Year 2 Year 2 $956,000 Turnover Year 2 Accounts Receivable 120,500 110,000 a. Determine the accounts receivable turnover for Year 2 and Year 1. Round your answers to one decimal place. Year 1 $992,000 136,400 120,500 Year 1 b. Determine the number of days' sales in receivables for Year 2 and Year 1. Round your answers to one decimal place. Assume 365 days per year. Number of Days' Sales in Receivables days days Year 1 c. The industry average for the accounts receivable turnover is 8.0. How does Olmeck, Inc. compare? In Year 2 Olmeck was the industry average. In Year 1, Olmeck was the industry average.

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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