Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms...

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Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 Accounts receivable, end of year Sales on account $182,600 1,195,740 20Y1 $197,000 $211,800 1,144,640 a. For 2012 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 1. Accounts receivable turnover 20Y3 20Y2 2. Number of days' sales in receivables X days days b. The collection of accounts receivable has improved . This can be seen in both the increase in accounts receivable turnover and the decrease in the collection period. Feedback Check My Work a.1. Divide net sales by average accounts receivable. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) +2. a.2. Divide average accounts receivable by average daily sales on account. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) +2. Average daily sales on account = Net Sales + 365 days. b. Consider the relationship of the accounts involved. Consider the effects of the changes on the business. Learning Objective 3. Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 Accounts receivable, end of year Sales on account $182,600 1,195,740 20Y1 $197,000 $211,800 1,144,640 a. For 2012 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 1. Accounts receivable turnover 20Y3 20Y2 2. Number of days' sales in receivables X days days b. The collection of accounts receivable has improved . This can be seen in both the increase in accounts receivable turnover and the decrease in the collection period. Feedback Check My Work a.1. Divide net sales by average accounts receivable. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) +2. a.2. Divide average accounts receivable by average daily sales on account. Average Accounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) +2. Average daily sales on account = Net Sales + 365 days. b. Consider the relationship of the accounts involved. Consider the effects of the changes on the business. Learning Objective 3.