The information below has been extracted from the financial statements of Crystal Craft Ltd. Required (a) Calculate

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The information below has been extracted from the financial statements of Crystal Craft Ltd.

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Required

(a) Calculate the following for years 2020 and 2021:
i. receivables turnover ratio

ii. average collection period of accounts receivable.

(b) Using your calculations in requirement (a), comment on the credit collection policies of the company. What additional information could be used to make an analysis of cash collection policies more meaningful?

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Financial Accounting

ISBN: 9780730363217

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield

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Question Posted: Mar 09, 2024 06:00 AM

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The information below has been extracted from the financial statements of Crystal Craft Ltd. Required (a) Calculate

Question:

2019 2020 2021 $ 44 000 $ 40 000 36000 88000 100 000 102 000 108 000 96000 124000 1 120 000 672000 680 000 1 130 000 700 000 Cash at bank Marketable securities Accounts receivable Sales revenue (all sales on credit) Cost of sales 1 108000

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Financial Accounting

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