Accounts receivable turnover : Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the sales by the average amount of net accounts receivables. In other words, average receivable turnover ratio identifies the number of times the average amount of accounts receivables being collected during a particular period. Days’ sales in receivables: Days’ sales in receivables indicate the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average. It is otherwise known as average collection period. To calculate: Company CS’s accounts receivable turnover ratio for 2016and 2015.
Accounts receivable turnover : Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the sales by the average amount of net accounts receivables. In other words, average receivable turnover ratio identifies the number of times the average amount of accounts receivables being collected during a particular period. Days’ sales in receivables: Days’ sales in receivables indicate the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average. It is otherwise known as average collection period. To calculate: Company CS’s accounts receivable turnover ratio for 2016and 2015.
Solution Summary: The author explains how accounts receivable turnover is calculated by dividing the sales by the average amount of net accounts payable.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Chapter 9, Problem 9.6APE
(a)
To determine
Accounts receivable turnover:
Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the sales by the average amount of net accounts receivables. In other words, average receivable turnover ratio identifies the number of times the average amount of accounts receivables being collected during a particular period.
Days’ sales in receivables:
Days’ sales in receivables indicate the number of days taken by a business, to collect its outstanding amount of accounts receivable on an average. It is otherwise known as average collection period.
To calculate: Company CS’s accounts receivable turnover ratio for 2016and 2015.
(b)
To determine
To calculate: Company CS’s days’ sales in receivables for 2016and 2015.
(c)
To determine
To identify: Whether the change in accounts receivable turnover and the day’s sales in receivables from 2015 to 2016are favorable or unfavorable.
Jasee Corp estimated manufacturing overhead costs for the year to be $600,000. Jasee also estimated 10,000 machine hours and 2,500 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On February 28, Job 42 was completed. It required 8 machine hours and 2 direct labor hours. What is the amount of manufacturing overhead allocated to the completed job?help
At the end of the first eof operations under variable costing?
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