Financial statement data for years ending December 31 for Cinderella Company follow: a. Determine the accounts receivable
Question:
Financial statement data for years ending December 31 for Cinderella Company follow:
a. Determine the accounts receivable turnover for 20Y9 and 20Y8.
b. Determine the days’ sales in receivables for 20Y9 and 20Y8. Use 365 days and round to one decimal place.
c. Does the change in accounts receivable turnover and the days’ sales in receivables from 20Y8 to 20Y9 indicate a favorable or unfavorable change?
20Υ9 20Y8 Sales $9,525,000 $7,616,000 Accounts receivable: Beginning of year End of year 715,000 785,000 645,000 715,000
Step by Step Answer:
A Accounts Receivable Turnover Net Credit sales Average account R...View the full answer
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
Related Video
Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a monthly, quarterly, or annual basis. To compute DSO, divide the average accounts receivable during a given period by the total value of credit sales during the same period and multiply the result by the number of days in the period being measured.
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