169.Based on the following data and using a 365-day year, compute (a) the accounts receivable turnover and (b) thenumber of days' sales in receivables for year 2 to 2 decimal places. The industry average turnover is 20 timesduring the year, and the number of days' sales in receivables averages 25. (c) Comment on this situation.
12/31/Year 1 accounts receivable
$ 100,000
12/31/Year 2 accounts receivable
70,000
For the year ended 12/31/Year 1, sales
1,050,000
For the year ended 12/31/Year 2, sales
1,200,000
170.For the fiscal years 1 and 2, Grange Co. reported the following:
Year Ended December 31,
Year 1
Year 2
Sales
$44,123,486
$34,124,961
Accounts receivable
749,321
719,365
a.Compute the accounts receivable turnover for Year 2. Round to two decimals.
b.Compute the number of days’ sales in receivable at the end of Year 2. Round to two decimals.
171.Financial statement data for the years ended December 31 for Parker Corporation are as follows:
Current YearPrior Year
$2,595,600
$2,409,500
Accounts receivable:
Beginning of the year
$390,000
$400,000
End of the year
434,000
390,000
a)Determine the accounts receivable turnover for each year. Round to one decimal place.
b)Determine the number of days’ sales in receivables for each year. Round to whole days.
c)Does the change in accounts receivable turnover and number of days’ sales in receivables fromthe first year to the second year indicate a favorable or unfavorable trend?
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