Question: a-2 and b-2 are wrong During January 2024 , the following transactions occur: danuary 2. Provide aervices to customexs for cash, $55,100. January 6 Provide

During January 2024 , the following transactions occur: danuary 2. Provide aervices to customexs for cash, $55,100. January 6 Provide servicen to customert on accourt, $92,400. pethod) January 20 Pay cash for salaries, 533,400. January 22 . Receive cash on accounts recelvable, $90,000. January 25 pay cash on acecunts payable, 57,500. January 30 pay cash tor utilities during Jaauary, $15,700. 7. Analyze how well 3D Family Fireworks manages its receivables: a-1. Calculate the receivables turnover ratio for the month of January. (Hint For the numerator, use total services provided to customers on account) (Round your final answer to 1 decimal place.) a.2. If the industry average of the recelvables turnover ratios for the month of January is 5.5 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? b-1. Calculate the ratio of Allowance for Uncollectible Accounts to Accounts Recelvable at the end of January. (Round percentage to 1 decimal place.) b-2. Based on a comparison of this ratio to the same ratio at the beginning of January, does the company expect an improvement or worsening in cash collections from customers on credit sales
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
