Question: Barga Co. reported net sales for 2016 and 2017 of $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2016, $65,000;

Barga Co. reported net sales for 2016 and 2017 of $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2016, $65,000; and December 31, 2017, $123,000.

a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal.

b. Evaluate and comment on any changes in the amount of liquid assets tied up in receivables.

Step by Step Solution

3.42 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Days sales uncollected on December 31 2016 Days sales uncollected on December 31 2017 b ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1203-B-C-A-P-A-C(188).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!