Use the following financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Ending Accounts Year Net Credit Sales Receivable 2017 $689,430 $331,250 2018 703,290 365,450 2019 773,500 406,650 A. Compute the accounts receivable turnover ratios for 2018 and 2019. Round your answers to two decimal places. 2018 times 2019 times B. Using the accounts receivable turnover, choose the statement that most closely describes the company's management of its receivables. The company's lending policies may be too strict. a. b. Collection efforts are not aggressive enough. There may be uncollectable receivables affecting the beginning and ending balances. C. d. All of the above statements may be correct.
Use the following financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Ending Accounts Year Net Credit Sales Receivable 2017 $689,430 $331,250 2018 703,290 365,450 2019 773,500 406,650 A. Compute the accounts receivable turnover ratios for 2018 and 2019. Round your answers to two decimal places. 2018 times 2019 times B. Using the accounts receivable turnover, choose the statement that most closely describes the company's management of its receivables. The company's lending policies may be too strict. a. b. Collection efforts are not aggressive enough. There may be uncollectable receivables affecting the beginning and ending balances. C. d. All of the above statements may be correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:**Black Water Industries: Financial Statement Information**
Use the following financial statement information from Black Water Industries.
| Year | Net Credit Sales | Ending Accounts Receivable |
|------|------------------|----------------------------|
| 2017 | $689,430 | $331,250 |
| 2018 | $703,290 | $365,450 |
| 2019 | $773,500 | $406,650 |
**Tasks:**
**A.** Compute the accounts receivable turnover ratios for 2018 and 2019. Round your answers to two decimal places.
- **2018:** ____ times
- **2019:** ____ times
**B.** Using the accounts receivable turnover, choose the statement that most closely describes the company’s management of its receivables.
a. The company’s lending policies may be too strict.
b. Collection efforts are not aggressive enough.
c. There may be uncollectable receivables affecting the beginning and ending balances.
d. All of the above statements may be correct.
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