1.
Concept Introduction
To compute: The accounts receivable turnover for the current year.
2.
Concept Introduction
Accounts Receivable Turnover Ratio: The accounts receivable turnover ratio is a financial indicator that shows how effectively a business collects receivables from its customers. The ratio counts the number of times throughout a certain time frame that receivables are changed to cash.
The performance of S Company regarding accounts receivable turnover.
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Chapter 7 Solutions
FINANCIAL+MANAG.ACCT.
- The following select financial statement information from Vortex Computing. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Vortex Computing if industry average for accounts receivable turnover ratio is 4 times and days sales in receivables ratio is 85 days?arrow_forwardThe following select financial statement information from Candid Photography. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Candid Photography if industry average for accounts receivable turnover ratio is 3 times and days sales in receivables ratio is 150 days?arrow_forwardUsing the following select financial statement information from Mover Supply Depot, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Mover Supply Depot if the industry average is 4 times?arrow_forward
- The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) B I U T₂ T² Ix 2022 $550,000 4,300,000 2022 7.9 times lil 2021 What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period. € $540,000 4,000,000 2021 46.2 days 48.7 days 7.5 times W 144 144 들 3 99 = á T ¶₁arrow_forwardUse the following financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Ending Accounts Receivable Year Net Credit Sales 2017 $690,430 $335,250 2018 705,290 364,450 2019 770,500 406,650 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. a. The company's lending policies may be too strict. b. Collection efforts are not aggressive enough. There may be uncollectable receivables affecting the beginning and ending C. balances. d. All of the above statements may be correct. a b darrow_forwardComparative figures for Apple and Google follow. Apple $ millions Accounts receivable, net Net sales Current Year $ 22,926 260,174 One Year Prior $ 23,186 265,595 Two Years Prior $ 17,874 229,234 Current Year $ 25,326 161,857 Required: Google One Year Prior $ 20,838 136,819 Two Years Prior $ 18,336 110,855 1. Compute the accounts receivable turnover for the two most recent years for (a) Apple and (b) Google. 2. Which company more quickly collects its accounts receivable in the current year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the accounts receivable turnover for the two most recent years for (a) Apple and (b) Google. Note: Round your answers to 1 decimal place. Accounts Receivable Turnover Current Year Prior Year a. Apple b. Google times times times timesarrow_forward
- Provide Answer with calculation and explanationarrow_forwardRecent financial statements of General Mills, Inc. report net sales of $12,734,750,000. Accounts receivable are $947,300,000 at the beginning of the year and $967,700,000 at the end of the year. (a1) Your answer is correct. Compute General Mills' accounts receivable turnover. (Round answer to 2 decimal places, e.g. 15.25.) Accounts receivable turnover eTextbook and Media 13.30 times Attempts: 1 of 3 used (a2) Compute General Mills' average collection period for accounts receivable in days. (Round answer to 2 decimal places, e.g. 15.25. Use 365 days for calculation.) Average collection period daysarrow_forwardUsing the following select financial statement information from Mover Supply Depot, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Mover Supply Depot if the industry average is 4 times?arrow_forward
- The following data are taken from the financial statements of Coronado Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 (a1) Compute for each year the accounts receivable turnover. At the end of 2020, accounts receivable (net) was $465,000. (Round answers to 1 decimal place, e.g. 1.6.) Accounts receivable turnover eTextbook and Media Save for Later (a2) 2022 2021 $525,000 $500,000 4,100,000 3,184,500 Average collection period 2022 times 2022 days 2021 2021 times Compute for each year the average collection period. At the end of 2020, accounts receivable (net) was $465,000. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) Assistance Used Attempts: unlimited days Submit Answerarrow_forwardA company reports the following: Sales Average accounts receivable (net) Determine (a) the accounts receivable turnover and (b) number of days' sales in receivables. Round your answers to one decimal place. Assume a 365- day year. a. Accounts receivable turnover $398,580 76,650 b. Number of days' sales in receivables daysarrow_forward10. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B Compute the number of days sales in receivables ratios for each company for 2018 and 2019 C. Determine which company is the better investment and why. Round answers to two decimal places.arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
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