According to its 2013 annual report, RONA Inc is the largest Canadian distributor and retailer of hardware, home renovation, and gardening products RONAs 2013 financial statements contained the following information, in thousands of Canadian dollars Required a What percentages of RONA Inc s account...

a 2013 2012 12231 240086 12231 48 14748 354482 14748 40 The pe ...

According to its 2013 annual report, RONA Inc. is the largest Canadian distributor and retailer of hardware,

Question:

According to its 2013 annual report, RONA Inc. is the largest Canadian distributor and retailer of hardware, home renovation, and gardening products. RONA€™s 2013 contained the following information, in thousands of Canadian dollars:

Required:
a. What percentages of RONA Inc.€™s accounts receivable were considered uncollectible in each of 2013 and 2012? Is the trend favourable or unfavourable?
b. Calculate RONA€™s accounts receivable turnover rates for 2013 and 2012 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 RONA to collect its accounts receivable in 2013? In 2012? Do these figures provide insights beyond what the results in part €œb€ 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...