For the Year 2 and Year 1, Classic Company reported the following: Year 2 Year 1 Sales
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Question:
For the Year 2 and Year 1, Classic Company reported the following:
Year 2 | Year 1 | |||
Sales | $5,524,640 | $5,288,850 | ||
Accounts receivable | 649,700 | 635,100 |
Assume that the accounts receivable were $540,200 at the beginning of Year 1.
Rosco Co. reported the following:
Year 2 | Year 1 | |||
Sales | $1,027,840 | $1,077,480 | ||
Accounts receivable | 113,150 | 120,450 |
Assume that accounts receivable were $142,350 at the beginning of Year 1.
Accounts receivable turnover ratios | ||||
Year 2 | Year 1 | |||
Classic | 8.6 | 9 | ||
Rosco | 8.8 | 8.2 |
a. Compute the average accounts receivable turnover ratio for Classic Company and Rosco Co. for Year 2 and Year 1. Round to one decimal place.
Classic Company: | |
Rosco Co.: |
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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