Financial statement data for years ending December 31 for Chiro-Solutions Company follow: __________________________ 20Y2 _____________ 20Y1 Sales
Question:
Financial statement data for years ending December 31 for Chiro-Solutions Company follow:
__________________________ 20Y2 _____________ 20Y1
Sales ............................ $2,912,000 ............. $2,958,000
Accounts receivable:
Beginning of year ............. 300,000 ................... 280,000
End of year ..................... 340,000 .................. 300,000
a. Determine the accounts receivable turnover for 20Y2 and 20Y1.
b. Determine the days' sales in receivables for 20Y2 and 20Y1. Use 365 days and round to one decimal place.
c. Does the change in accounts receivable turnover and the days' sales in receivables from 20Y1 to 20Y2 indicate a favorable or unfavorable change?
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
a Turnover 20Y2 20Y1 Sales 2912000 2958000 Accounts receivable Beginning of ...View the full answer
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
