Calculate the accounts receivable turnover for Year 2 and Year 1.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem 3CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the efficiency of Company B’s management in collecting accounts receivables.

(4)

To determine

Write the assumption about sales that might distort the ratios and makes the ratios not to be comparable for Year 2 and Year 1.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years: Year 2 Year 1 Sales $4,446,795 $4,435,480 Accounts receivable 346,750 332,150 Assume that accounts receivable were $383,250 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. Year 2: Year 1: b. Compute the days' sales in receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations. Year 2: days Year 1: days c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) in the efficiency of collecting accounts receivable and is a(n) change. The change in the days' sales in receivables indicates a(n) change.

Best Buy is a specialty retailer of consumer electronics, including personal computers, entertainment software, and appliances. Best Buy operates retail stores in addition to the Best Buy, Media Play, On Cue, and Magnolia Hi-Fi websites. For two recent years, Best Buy reported the following (in millions): Year 2 Year 1 Sales $39,528 $40,339 Accounts receivable at end of year 1,162 1,280 Assume that the accounts receivable (in millions) were $1,308 at the beginning of fiscal Year 1. 1. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimal places. 2. Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 days and round to one decimal place. What conclusions can be drawn from (1) and (2) regarding Best Buy's 3. efficiency in collecting receivables? 4. What assumption did we make about sales for the Best Buy ratio computa- tions that might distort the ratios and therefore cause the ratios not to be comparable for Year 2 and Year 1?

Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years: Year 2 Year 1 Sales $1,904,205 $1,877,925 Accounts receivable 175,200 $167,900 Assume that accounts receivable were $189,800 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. Year 2: fill in the blank 1 Year 1: fill in the blank 2 b. Compute the days' sales in receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations. Year 2: fill in the blank 3 days Year 1: fill in the blank 4 days c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) ______ in the efficiency of collecting accounts receivable and is a(n) ______ change. The change in the days' sales in receivables indicates a(n) ______…

Answer 2

Question

Chapter 9, Problem 3CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the efficiency of Company B’s management in collecting accounts receivables.

(4)

To determine

Write the assumption about sales that might distort the ratios and makes the ratios not to be comparable for Year 2 and Year 1.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 3CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the efficiency of Company B’s management in collecting accounts receivables.

(4)

To determine

Write the assumption about sales that might distort the ratios and makes the ratios not to be comparable for Year 2 and Year 1.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 3CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the efficiency of Company B’s management in collecting accounts receivables.

(4)

To determine

Write the assumption about sales that might distort the ratios and makes the ratios not to be comparable for Year 2 and Year 1.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 3CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

Conclude the efficiency of Company B’s management in collecting accounts receivables.

(4)

To determine

Write the assumption about sales that might distort the ratios and makes the ratios not to be comparable for Year 2 and Year 1.

Answer 6

Chapter 9, Problem 3CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

Answer 7

Chapter 9, Problem 3CP

(1)

To determine

Calculate the accounts receivable turnover for Year 2 and Year 1.

Answer 8

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

Answer 9

(2)

To determine

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

Answer 10

(3)

To determine

Conclude the efficiency of Company B’s management in collecting accounts receivables.

Answer 11

(3)

To determine

Conclude the efficiency of Company B’s management in collecting accounts receivables.

Answer 12

(4)

To determine

Write the assumption about sales that might distort the ratios and makes the ratios not to be comparable for Year 2 and Year 1.

Answer 13

(4)

To determine

Write the assumption about sales that might distort the ratios and makes the ratios not to be comparable for Year 2 and Year 1.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 9 - What are the three classifications of receivables?Ch. 9 - Dans Hardware is a small hardware store in the...Ch. 9 - What kind of an account (asset, liability, etc.)...Ch. 9 - After the accounts are adjusted and closed at the...Ch. 9 - A firm has consistently adjusted its allowance...Ch. 9 - Which of the two methods of estimating...Ch. 9 - Neptune Company issued a note receivable to...Ch. 9 - If a note provides for payment of principal of...Ch. 9 - The maker of a 240,000, 6%, 90-day note receivable...Ch. 9 - The note receivable dishonored in Discussion...

Calculate the accounts receivable turnover for Year 2 and Year 1.

Solution Summary: The author calculates the accounts receivable turnover ratio for Year 2 and Year 1.

Concept explainers

Videos

Calculate the accounts receivable turnover for Year 2 and Year 1.

Calculate the day’s sales in receivables at the end of Year 2 and Year 1.

Conclude the efficiency of Company B’s management in collecting accounts receivables.

Write the assumption about sales that might distort the ratios and makes the ratios not to be comparable for Year 2 and Year 1.

Want to see the full answer?

Chapter 9 Solutions