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 of Company B for the year 2017.

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Answer 1

Question

Chapter 8, Problem 8.4DIE

(a)

To determine

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 of Company B for the year 2017.

(b)

To determine

To calculate: The average collection period of Company B for the year 2017.

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Answer 2

Question

Chapter 8, Problem 8.4DIE

(a)

To determine

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 of Company B for the year 2017.

(b)

To determine

To calculate: The average collection period of Company B for the year 2017.

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Answer 3

Question

Chapter 8, Problem 8.4DIE

(a)

To determine

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 of Company B for the year 2017.

(b)

To determine

To calculate: The average collection period of Company B for the year 2017.

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Answer 4

Question

Chapter 8, Problem 8.4DIE

(a)

To determine

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 of Company B for the year 2017.

(b)

To determine

To calculate: The average collection period of Company B for the year 2017.

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Answer 5

Chapter 8, Problem 8.4DIE

(a)

To determine

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 of Company B for the year 2017.

(b)

To determine

To calculate: The average collection period of Company B for the year 2017.

Answer 6

Chapter 8, Problem 8.4DIE

(a)

To determine

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 of Company B for the year 2017.

Answer 7

Chapter 8, Problem 8.4DIE

(a)

To determine

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 of Company B for the year 2017.

Answer 8

(b)

To determine

To calculate: The average collection period of Company B for the year 2017.

Answer 9

(b)

To determine

To calculate: The average collection period of Company B for the year 2017.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Solution Summary: The author calculates the accounts receivable turnover ratio of Company B for the year 2017.

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To calculate: The average collection period of Company B for the year 2017.

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