Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

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Answer 1

Question

Chapter 9, Problem 6PEB

(a)

To determine

Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

(b)

To determine

Calculate Company R’s days’ sales in receivables for 2016 and 2015.

(c)

To determine

Identify whether the change in accounts receivable turnover and the day’s sales in receivables from 2015 to 2016 are favorable or unfavorable.

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Use the following financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Ending Accounts Receivable Year Net Credit Sales 2017 $690,430 $335,250 2018 705,290 364,450 2019 770,500 406,650 A. Compute the accounts receivable turnover ratios for 2018 and 2019. Round your answers to two decimal places. 2018 times 2019 times B. Using the accounts receivable turnover, choose the statement that most closely describes the company's management of its receivables. a. The company's lending policies may be too strict. b. Collection efforts are not aggressive enough. There may be uncollectable receivables affecting the beginning and ending C. balances. d. All of the above statements may be correct. a b d

Answer 2

Question

Chapter 9, Problem 6PEB

(a)

To determine

Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

(b)

To determine

Calculate Company R’s days’ sales in receivables for 2016 and 2015.

(c)

To determine

Identify whether the change in accounts receivable turnover and the day’s sales in receivables from 2015 to 2016 are favorable or unfavorable.

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Answer 3

Question

Chapter 9, Problem 6PEB

(a)

To determine

Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

(b)

To determine

Calculate Company R’s days’ sales in receivables for 2016 and 2015.

(c)

To determine

Identify whether the change in accounts receivable turnover and the day’s sales in receivables from 2015 to 2016 are favorable or unfavorable.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 6PEB

(a)

To determine

Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

(b)

To determine

Calculate Company R’s days’ sales in receivables for 2016 and 2015.

(c)

To determine

Identify whether the change in accounts receivable turnover and the day’s sales in receivables from 2015 to 2016 are favorable or unfavorable.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 9, Problem 6PEB

(a)

To determine

Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

(b)

To determine

Calculate Company R’s days’ sales in receivables for 2016 and 2015.

(c)

To determine

Identify whether the change in accounts receivable turnover and the day’s sales in receivables from 2015 to 2016 are favorable or unfavorable.

Answer 6

Chapter 9, Problem 6PEB

(a)

To determine

Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

Answer 7

Chapter 9, Problem 6PEB

(a)

To determine

Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

Answer 8

(b)

To determine

Calculate Company R’s days’ sales in receivables for 2016 and 2015.

Answer 9

(b)

To determine

Calculate Company R’s days’ sales in receivables for 2016 and 2015.

Answer 10

(c)

To determine

Identify whether the change in accounts receivable turnover and the day’s sales in receivables from 2015 to 2016 are favorable or unfavorable.

Answer 11

(c)

To determine

Identify whether the change in accounts receivable turnover and the day’s sales in receivables from 2015 to 2016 are favorable or unfavorable.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

Solution Summary: The author calculates Company R's accounts receivable turnover ratio for 2016 and 2015.

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Calculate Company R’s accounts receivable turnover ratio for 2016 and 2015.

Calculate Company R’s days’ sales in receivables for 2016 and 2015.

Identify whether the change in accounts receivable turnover and the day’s sales in receivables from 2015 to 2016 are favorable or unfavorable.

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