The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales

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The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/60.

2015 2014 2013 Accounts receivable, end of year Net sales on account $147.500 975,000 $158.000 900,000 $165.000

a. Determine for years 2015 and 2014 (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round to nearest dollar and one decimal place.
b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Accounting Volume 2

ISBN: 978-0176509743

2nd Canadian edition

Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren

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