The following information was taken from the 2017 financial statements of Honey Factory Ltd: Required Answer each

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The following information was taken from the 2017 financial statements of Honey Factory Ltd:

Required

Answer each of the following questions.

(a) Calculate the receivables turnover and average collection period for 2017 and 2016 for the entity, assuming all sales are on credit.

(b) Calculate the credit risk ratio for the entity for 2017 and 2016.

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Financial Accounting Reporting Analysis And Decision Making

ISBN: 9780730313748

5th Edition

Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong

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Question Posted: Sep 08, 2022 02:05 AM

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The following information was taken from the 2017 financial statements of Honey Factory Ltd: Required Answer each

Question:

(in millions) Accounts receivable Allowance for doubtful debts Sales Total current assets 2017 $ 146.6 6.3 1113.0 367.2 2016 $104.3 5.7 899.3 285.8 2015 $126.0 8.2 756.9 258.7

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a Receivables turnover and average collection period can be calculated as follows 2017 Receivables t...View the full answer

Financial Accounting Reporting Analysis And Decision Making

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