
Concept explainers
(a)
Accounts receivable turnover
Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.
Average collection period:
Average collection period indicates the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average.
To calculate: The accounts receivable turnover, and average collection period of Corporation F for the year 2017.
(b)
To find out: whether accounts receivable is a material component of Corporation F’s current assets in 2017.
(c)
To evaluate: The balance in Corporation F’s allowance for doubtful accounts.

Want to see the full answer?
Check out a sample textbook solution
Chapter 8 Solutions
Bundle: Financial Accounting: Tools for Business Decision Making 8e Binder Ready Version + WileyPLUS Registration Code
- Accountingarrow_forwardcalculate the net sales for the fiscal year?arrow_forwardCottonwood Company reports the following operating results for the month of August: sales $347,900 (units 4,970); variable costs $216,000; and fixed costs $97,200. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 11% with no change in total variable costs or units sold. 2. Reduce variable costs to 51% of sales. Compute the net income to be earned under each alternative.arrow_forward
- Metro Inc. sells a product with the following data: • Selling price per unit: $50 • • Contribution margin ratio: 20% Fixed costs: $180,000 Using the contribution margin ratio approach, determine the sales in dollars and in units needed to achieve a target profit of $60,000.arrow_forwardGeneral accountingarrow_forwardwhat is the full cost of the product for trellis manufacturing ?? accountingarrow_forward
- provide correct accounting questionarrow_forwardPlease give me true answerarrow_forwardYou've been asked to evaluate a new 25-year callable, convertible bond issued by Nova Energy Inc.. The bond has a 6.5% annual coupon, a face value of $1,000, and a conversion price of $45. The company's stock currently trades at $38 per share. What is the conversion premium for this bond? a) $5 b) $6 c) $7 d) $8 e) $10arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College