Indigo Landscaping Services is entering its fifth year of operations and is currently performing its year-end...
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Indigo Landscaping Services is entering its fifth year of operations and is currently performing its year-end analysis. Organizational management evaluates both financial and nonfinancial measures to determine what areas may need improvement. They asked Karen, a staff accountant, to collect some data and perform an analysis on the company's accounts receivable. Karen has gathered the following information: Accounts Receivable, beginning Accounts Receivable, ending Net Credit Sales Year 1 (a) $97,000 $95,000 $1,008,000 Use the information above to answer the following questions. Your answer has been saved. See score details after the due date. Accounts Receivable Turnover in Year 1 Year 2 $95,000 $109,010 10% increase over last year What are the accounts receivable turnover amounts in Years 1 and 2, and what is the percentage change between the years? (Round answers to 2 decimal places, e.g. 52.75.) Accounts Receivable Turnover in Year 2 % change in accounts receivable turnover 10.50 10.87 3.52 % Attempts: 1 of 1 used (b) What are the days' sales in receivables amounts in Years 1 and 2, and what is the change between years? (Use 365 days in each year. Round answers to 2 decimal places, e.g. 52.75.) Days' sales in receivable in year 1 Days' sales in receivable in year 2 Change in days' sales in receivables Save for Later days days days Attempts: 0 of 1 used Submit Answer Indigo Landscaping Services is entering its fifth year of operations and is currently performing its year-end analysis. Organizational management evaluates both financial and nonfinancial measures to determine what areas may need improvement. They asked Karen, a staff accountant, to collect some data and perform an analysis on the company's accounts receivable. Karen has gathered the following information: Accounts Receivable, beginning Accounts Receivable, ending Net Credit Sales Year 1 (a) $97,000 $95,000 $1,008,000 Use the information above to answer the following questions. Your answer has been saved. See score details after the due date. Accounts Receivable Turnover in Year 1 Year 2 $95,000 $109,010 10% increase over last year What are the accounts receivable turnover amounts in Years 1 and 2, and what is the percentage change between the years? (Round answers to 2 decimal places, e.g. 52.75.) Accounts Receivable Turnover in Year 2 % change in accounts receivable turnover 10.50 10.87 3.52 % Attempts: 1 of 1 used (b) What are the days' sales in receivables amounts in Years 1 and 2, and what is the change between years? (Use 365 days in each year. Round answers to 2 decimal places, e.g. 52.75.) Days' sales in receivable in year 1 Days' sales in receivable in year 2 Change in days' sales in receivables Save for Later days days days Attempts: 0 of 1 used Submit Answer
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To calculate the accounts receivable turnover and days sales in receivables we need to use the follo... View the full answer
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
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