Question: Todd Co. reported annual net sales for 2010 and 2011 of $664,000 and $746,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2010,

Todd Co. reported annual net sales for 2010 and 2011 of $664,000 and $746,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2010, $65,000; and December 31, 2011, $93,000.

(a) Calculate its days’ sales uncollected at the end of each year.

(b) Evaluate and comment on any changes in the amount of liquid assets tied up in receivables.

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a Days sales uncollected on December 31 2010 b Evaluation The change from 357 to 455 days sales ... View full answer

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