Chapter 8, Problem 12E

To determine

Days Sales Uncollected: Days Sales Uncollected is a measure of how quickly a company can convert its accounts receivables into cash. Its computed by dividing current balance of accounts receivables by net credit sales over the year just completed and then multiplying by 365. Its given by below formula:

$DaysSalesUncollected=\frac{Accounts\mathrm{Re}ceivable}{NetSales}*365$

To determine:

Days of Sales Uncollected at the end of each year along with analysis of any change in liquid assets tied up in accounts receivables.