Presented below are selected data from the financial statements of Kopitiam Sdn Bhd for the last...

Transcribed Image Text:

Presented below are selected data from the financial statements of Kopitiam Sdn Bhd for the last three years. Total assets Net credit sales Accounts receivable Year 3 RM650,000 800,000 85,000 Year 2 RM821,000 650,000 79,000 Year1 c) What problem do you see with the company's credit policy if the terms are net 30 days? Explain your answer. RM800,000 720,000 74,000 Required: a) Calculate Kopitiam Sdn Bud's accounts receivable turnover ratio for Year 2. and Year 3. b) Calculate the number of days the average balance of receivables is outstanding before being converted into cash (turnover in days) for Year 2 and Year 3. Presented below are selected data from the financial statements of Kopitiam Sdn Bhd for the last three years. Total assets Net credit sales Accounts receivable Year 3 RM650,000 800,000 85,000 Year 2 RM821,000 650,000 79,000 Year1 c) What problem do you see with the company's credit policy if the terms are net 30 days? Explain your answer. RM800,000 720,000 74,000 Required: a) Calculate Kopitiam Sdn Bud's accounts receivable turnover ratio for Year 2. and Year 3. b) Calculate the number of days the average balance of receivables is outstanding before being converted into cash (turnover in days) for Year 2 and Year 3.

Answer rating: 100% (QA)

a Calculate Kopitiam Sdn Buds accounts receivable turnover ratio for Year 2 and Year 3 The accounts receivable turnover ratio is calculated by dividin... View the full answer