Accounts receivable turnover ratio: This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows: A c c o u n t s r e c e i v a b l e t u r n o v e r r a t i o = N e t c r e d i t S a l e s A v e r a g e a c c o u n t s r e c e i v a b l e Days Sales in receivable ratio: This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows: D a y s S a l e s i n r e c e i v a b l e r a t i o = 365 A c c o u n t s r e c e i v a b l e t u r n o v e r r a t i o To Calculate: The Days Sales in receivables for years 1 and 2

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Answer 1

Question

Chapter 6, Problem 6.9.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

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Answer 2

Question

Chapter 6, Problem 6.9.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 6.9.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 6, Problem 6.9.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.9.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Answer 6

Chapter 6, Problem 6.9.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Answer 7

Chapter 6, Problem 6.9.2MBA

To determine

Concept Introduction:

Accounts receivable turnover ratio:

This is an efficiency ratio that indicates the conversion of accounts receivable into cash. This ratio is calculated by dividing the Net credit Sales by the Average accounts receivable. The formula to calculate this ratio is as follows:

Accounts receivable turnover ratio = Net credit SalesAverage accounts receivable

Days Sales in receivable ratio:

This is an efficiency ratio that indicates the period for which credit sales remain as receivable. The ratio is calculated by dividing 365 days by the Accounts receivable turnover ratio. The formula to calculate this ratio is as follows:

Days Sales in receivable ratio= 365Accounts receivable turnover ratio

To Calculate:

The Days Sales in receivables for years 1 and 2

Answer 8

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Answer 9

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Answer 10

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Answer 11

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Solution Summary: The author explains the accounts receivable turnover ratio, which is calculated by dividing Net credit Sales by Average accounts.

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