Financial Accounting
9th Edition
ISBN: 9781259738692
Author: Libby
Publisher: MCG
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Chapter 6, Problem 6.23E
1.
To determine
Determine the receivables turnover ratio and average days in sales.
2.
To determine
Explain the meaning of each number.
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Students have asked these similar questions
A recent annual report for NPS contained the following data:
(dollars in thousands)
Previous Year
Current Year
$ 4,517,000
150,000
$4,367,000
$3,617,000
183,000
Accounts receivable
Less: Allowance for doubtful accounts
$3,434,000
Net accounts receivable
$ 35,797,000
Net sales (assume all on credit)
Required:
1. Determine the receivables turnover ratio and average days sales in receivables for the current year. (Use 365 days a year. Do not
round intermediate calculations. Enter your answers in thousands not in dollars.)
Receivables Turnover Ratio
Numerator
0 times
Denominator
Average Days Sales in Receivables
Numerator
O days
Denominator
A recent annual report for NPS contained the following data:
(dollars in thousands)
Previous Year
Current Year
$3,617,000
183,000
$ 4,517,000
150,000
Accounts receivable
Less: Allowance for doubtful accounts
$ 4,367,000
$3,434,000
Net accounts receivable
$ 35,797,000
Net sales (assume all on credit)
Required:
1. Determine the receivables turnover ratio and average days sales in receivables for the current year. (Use 365 days a year. Do not
round intermediate calculations. Enter yo
answers in thousands not in dollars.)
Receivables Turnover Ratio
Numerator
0 times
Denominator
Average Days Sales in Receivables
Numerator
0 days
Denominator
II
A recent annual report for Adobe Incorporated contained the following data:
(dollars in thousands)
Previous Year
Accounts receivable
Less: Allowances
Net accounts receivable
Net sales (assume all on credit)
Required:
Current Year
$ 1,564,459
9,050
$ 1,555,409
$ 11,141,297
$ 1,380,559
14,581
$ 1,365,978
1. Determine the receivables turnover ratio and average days sales in receivables for the current year.
Note: Use 365 days a year. Enter your answers in thousands not in dollars.
× Answer is complete but not entirely correct.
Receivables Turnover Ratio
Numerator
Denominator
Average net trade accounts receivable
Receivables turnover
$
$ 1,472,509 x
8 ×
184,063.63
times
Average Days Sales in Receivables
Numerator
Denominator
Average net trade accounts receivable
☑
365
365
7.57
days
48.22 ×
Chapter 6 Solutions
Financial Accounting
Ch. 6 - Prob. 1QCh. 6 - What is gross profit or gross margin on sales? In...Ch. 6 - What is a credit card discount? How does it affect...Ch. 6 - Prob. 4QCh. 6 - Prob. 5QCh. 6 - Differentiate accounts receivable from notes...Ch. 6 - Which basic accounting principle is the allowance...Ch. 6 - Using the allowance method, is bad debt expense...Ch. 6 - Prob. 9QCh. 6 - Prob. 10Q
Ch. 6 - Prob. 11QCh. 6 - Prob. 12QCh. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Briefly explain how the total amount of cash...Ch. 6 - Prob. 16QCh. 6 - Sales discounts with terms 2/10, n/30 mean: a. 10...Ch. 6 - Gross sales total 300,000, one-half of which were...Ch. 6 - A company has been successful in reducing the...Ch. 6 - When a company using the allowance method writes...Ch. 6 - You have determined that Company X estimates bad...Ch. 6 - Prob. 6MCQCh. 6 - Which of the following is not a step toward...Ch. 6 - When using the allowance method, as bad debt...Ch. 6 - Which of the following best describes the proper...Ch. 6 - Prob. 10MCQCh. 6 - Prob. 6.1MECh. 6 - Prob. 6.2MECh. 6 - Recording Bad Debts Prepare journal entries for...Ch. 6 - Prob. 6.4MECh. 6 - Determining the Effects of Credit Policy Changes...Ch. 6 - Prob. 6.6MECh. 6 - Prob. 6.7MECh. 6 - Prob. 6.1ECh. 6 - Reporting Net Sales with Credit Sales, Sales...Ch. 6 - Reporting Net Sales with Credit Sales, Sales...Ch. 6 - Determining the Effects of Credit Sales, Sales...Ch. 6 - Prob. 6.5ECh. 6 - Reporting Bad Debt Expense and Accounts Receivable...Ch. 6 - Recording Bad Debt Expense Estimates and...Ch. 6 - Recording Bad Debt Expense Estimates and...Ch. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Computing Bad Debt Expense Using Aging Analysis...Ch. 6 - Recording and Reporting a Bad Debt Estimate Using...Ch. 6 - Recording and Reporting a Bad Debt Estimate Using...Ch. 6 - Prob. 6.14ECh. 6 - Prob. 6.15ECh. 6 - Inferring Bad Debt Write-Offs and Cash Collections...Ch. 6 - Inferring Bad Debt Write-Offs and Cash Collections...Ch. 6 - Prob. 6.18ECh. 6 - Prob. 6.19ECh. 6 - Prob. 6.20ECh. 6 - Recording, Reporting, and Evaluating a Bad Debt...Ch. 6 - Prob. 6.22ECh. 6 - Prob. 6.23ECh. 6 - Interpreting tho Effects of Salos Declines and...Ch. 6 - Prob. 6.25ECh. 6 - Prob. 6.26ECh. 6 - Prob. 6.27ECh. 6 - Prob. 6.1PCh. 6 - Recording Bad Debts and Interpreting Disclosure of...Ch. 6 - Determining Bad Debt Expense Based on Aging...Ch. 6 - Preparing an Income Statement and Computing the...Ch. 6 - Prob. 6.5PCh. 6 - Prob. 6.6PCh. 6 - Prob. 6.7PCh. 6 - Reporting Net Sales and Expenses with Discounts,...Ch. 6 - Prob. 6.2APCh. 6 - Determining Bad Debt Expense Based on Aging...Ch. 6 - Prob. 6.4APCh. 6 - Prob. 6.5APCh. 6 - Prob. 6.1CONCh. 6 - Finding Financial Information Refer to the...Ch. 6 - Finding Financial Information Refer to the...Ch. 6 - Prob. 6.3CPCh. 6 - Prob. 6.4CPCh. 6 - Prob. 6.5CP
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