The Super Gym Company Limited sells fitness equipment to retail outlets and fitness centres. The majority of

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The Super Gym Company Limited sells fitness equipment to retail outlets and fitness centres. The majority of these sales are on credit. The financial data related to accounts receivable over the last three years are as follows:
The Super Gym Company Limited sells fitness equipment to retail

Required:
a. Calculate the accounts receivable turnover for each year. For 2009, use the accounts receivable in 2009. For the other two years, use the average accounts receivable.
b.
Calculate the average number of days required to collect the receivables in each year.
c. As a user of this information, describe what trends you see. What additional information would you like to have to help you understand the trends?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  book-img-for-question

Financial Accounting A User Perspective

ISBN: 978-0470676608

6th Canadian Edition

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

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