Based on the financial statements below:

1) calculate Days in Receivables

2) Explain possible reasons of decreasing or increasing of this ratio (feel free to use other information from the statements).

3) What does this change mean for the business?

If there are average values in the formulas, please, use the end of year values instead.

Transcribed Image Text:

Cash Accounts rec. Inventory Total Fixed assets Total assets 2017 $980 $950 RFT Corporation Statement of financial position Years ended 2017 and 2018 ($ in millions) $5,750 2018 $960 Accounts payable $880 Notes payable $2,120 $1,750 Total $5,050 $3,590 Long-term debt $1,700 $2,540 $6,130 Common stock Retained earnings Total liabilities and Owner's equity 2017 $950 $40 2018 $730 $150 $990 $2,225 $2,030 $3,570 $505 $1,580 $5,750 $6,130 $880 $100 Cash Accounts rec. Inventory Total Fixed assets Total assets 2017 $980 $950 RFT Corporation Statement of financial position Years ended 2017 and 2018 ($ in millions) $5,750 2018 $960 Accounts payable $880 Notes payable $2,120 $1,750 Total $5,050 $3,590 Long-term debt $1,700 $2,540 $6,130 Common stock Retained earnings Total liabilities and Owner's equity 2017 $950 $40 2018 $730 $150 $990 $2,225 $2,030 $3,570 $505 $1,580 $5,750 $6,130 $880 $100

Answer rating: 100% (QA)

Accounts receivables Average Sales per Day Average Sale per Day Total Sale D... View the full answer