The 2009 financial statements of Winpak Ltd. contained the following information, in thousands of US dollars. (Winpak

Question:

The 2009 of Winpak Ltd. contained the following information, in thousands of US dollars. (Winpak sells high-quality packaging materials and packaging machines.)

The 2009 financial statements of Winpak Ltd. contained the following

Required:
a. What percentages of Winpak's accounts receivable were considered uncollectible in each of 2009 and 2008? Is the trend favourable or unfavourable?
b. Calculate Winpak's accounts receivable turnover rates for 2009 and 2008 using the ending balances of the receivables for each year rather than the average receivables. Is the trend favourable or unfavourable?
c. What was the average number of days taken by Winpak to collect its accounts receivable in 2009? In 2008? Do these figures provide insights beyond what the results in part "b" showed? Explain.

Financial Statements
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...