Refer to the Simon Company information in Exercise 17-6. The company's income statements for the years ended
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Refer to the Simon Company information in Exercise 17-6. The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit and then compute: (1) days' sales uncollected, (2) accounts receivable turnover, (3) inventory turnover, and (4) days' sales in inventory. Comment on the changes in the ratios from 2016 to 2017.
Accounts ReceivableAccounts 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...
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Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
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