The financial statements included in the 2011 Form 10-K of Columbia Sportswear reported the following amounts (in
Question:
The financial statements included in the 2011 Form 10-K of Columbia Sportswear reported the following amounts (in thousands of dollars):
Net sales, for the year ended December 31, 2011 .............................$1,693,985
Accounts receivable, net, December 31, 2011 ........................................351,538
Accounts receivable, net, December 31, 2010 ........................................300,181
Required
1. Compute Columbia Sportswear’s accounts receivable turnover ratio for the year ended December 31, 2011. (Assume that all sales are on credit.)
2. What is the average collection period in days for an account receivable? Explain your answer.
3. Give some examples of the types of customers you would expect Columbia Sportswear to have. Do you think the average collection period for sales to these customers is reasonable?
What other information do you need to fully answer that question?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts 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:
1 Accounts receivable turnover Net SalesAverage Accounts Receivable 1693985351538 3001812 169...View the full answer
Financial Accounting The Impact on Decision Makers
ISBN: 978-1285182964
9th edition
Authors: Gary A. Porter, Curtis L. Norton
