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 Company S for the year 2017.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.4EYCT

(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 and average collection period of Company S for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Company S’s current assets in 2017.

(c)

To determine

To discuss: The expected change in answer (a), if Company S sells seasonal products.

(d)

To determine

To evaluate: The credit risk of Company S’s concentrated receivables.

(e)

To determine

To comment: On the informational value of Company S’s Note 19.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

I need this question answer general Accounting

Financial Accounting

General Accounting

Answer 2

Question

Chapter 8, Problem 8.4EYCT

(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 and average collection period of Company S for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Company S’s current assets in 2017.

(c)

To determine

To discuss: The expected change in answer (a), if Company S sells seasonal products.

(d)

To determine

To evaluate: The credit risk of Company S’s concentrated receivables.

(e)

To determine

To comment: On the informational value of Company S’s Note 19.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8.4EYCT

(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 and average collection period of Company S for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Company S’s current assets in 2017.

(c)

To determine

To discuss: The expected change in answer (a), if Company S sells seasonal products.

(d)

To determine

To evaluate: The credit risk of Company S’s concentrated receivables.

(e)

To determine

To comment: On the informational value of Company S’s Note 19.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.4EYCT

(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 and average collection period of Company S for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Company S’s current assets in 2017.

(c)

To determine

To discuss: The expected change in answer (a), if Company S sells seasonal products.

(d)

To determine

To evaluate: The credit risk of Company S’s concentrated receivables.

(e)

To determine

To comment: On the informational value of Company S’s Note 19.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.4EYCT

(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 and average collection period of Company S for the year 2017.

(b)

To determine

To find out: whether accounts receivable is a material component of Company S’s current assets in 2017.

(c)

To determine

To discuss: The expected change in answer (a), if Company S sells seasonal products.

(d)

To determine

To evaluate: The credit risk of Company S’s concentrated receivables.

(e)

To determine

To comment: On the informational value of Company S’s Note 19.

Answer 6

Chapter 8, Problem 8.4EYCT

(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 and average collection period of Company S for the year 2017.

Answer 7

Chapter 8, Problem 8.4EYCT

(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 and average collection period of Company S for the year 2017.

Answer 8

(b)

To determine

To find out: whether accounts receivable is a material component of Company S’s current assets in 2017.

Answer 9

(b)

To determine

To find out: whether accounts receivable is a material component of Company S’s current assets in 2017.

Answer 10

(c)

To determine

To discuss: The expected change in answer (a), if Company S sells seasonal products.

Answer 11

(c)

To determine

To discuss: The expected change in answer (a), if Company S sells seasonal products.

Answer 12

(d)

To determine

To evaluate: The credit risk of Company S’s concentrated receivables.

Answer 13

(d)

To determine

To evaluate: The credit risk of Company S’s concentrated receivables.

Answer 14

(e)

To determine

To comment: On the informational value of Company S’s Note 19.

Answer 15

(e)

To determine

To comment: On the informational value of Company S’s Note 19.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 19

Ch. 8 - What is the difference between an account...Ch. 8 - What are some common types of receivables other...Ch. 8 - What are the essential features of the allowance...Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Tawnya Dobbs, the vice president of sales for...Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

Solution Summary: The author calculates the accounts receivable turnover and average collection period of Company S for the year 2017.

Videos

To find out: whether accounts receivable is a material component of Company S’s current assets in 2017.

To discuss: The expected change in answer (a), if Company S sells seasonal products.

To evaluate: The credit risk of Company S’s concentrated receivables.

To comment: On the informational value of Company S’s Note 19.

Want to see the full answer?

Chapter 8 Solutions