Concept introduction:
Days Sales uncollected: This isan efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying
Requirement-1:
To calculate: The days sales uncollected for each year of the company.
Concept introduction:
Days Sales uncollected: This isan efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by multiplying Accounts receivable with 365 days and dividing the result by Net Sales. The formula for Days Sales uncollected is as follows:
To comment: on the change in the liquid asset tied up in the accounts receivable.

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Chapter 6 Solutions
FINANCIAL ACCT-CONNECT
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