A company computes its accounts receivable turnover to be 20. Based onthis information, find the average collection period. If the company has a credit collection period of 30 days, explain the relationship between thecredit collection period and the average collection period.

Q: Based on the following data for the current year, what is the number of days' sales in receivable?…

A: Number of days sale in receivable means how much time will the debtor takes to clear his dues. First…

Q: A company reports the following: Sales $1,460,000 Average accounts receivable (net) 100,000…

A: a Account  receivable turnover=sales/ average account receivable (net) =$1,460,000/$100,000 =14.6

Q: A company reports the following: Sales $399,675 Average accounts receivable (net) 54,750 Determine…

A: Accounts receivable turnover is computed by dividing the sales with the average accounts receivable…

Q: Using the data in the preceding question, assume accounts receivable had a beginning balance of…

A: Given information is: Net credit Sales = $807,800 Beginning Account Receivables = $67,400 Ending…

Q: ​Gross sales $150,000 ​Accounts receivable, beginning of year $18,000 ​Sales…

A: Accounts receivable is the amount owed to a corporation for goods or services delivered or used but…

Q: A company has net income of 213,700 a profit margin of 7.1 percent, and an accounts receivable…

A: Net income = 213,700 Profit margin = 7.1% Sales = Net income/Profit margin          = 213700/0.071…

Q: Determine (a) the accounts receivable turnover and (b) the number of days' sales final answers to…

A: Solution: Number of days sales in receivable represents the average number of days a company takes…

Q: What is LoGo's payables deferral period (DPO)?

A: Payables deferral period (DPO) = Accounts payable/Credit purchases per day It is the number of days…

Q: Oman company had $180,000 sales on credit last year. The accounts receivable balance was $14,000…

A: Given: Credit sales = $180,000 Accounts receivables = $14,000

Q: Mifflin Co. reported the following for the current year: net sales of $60,000; cost of goods sold of…

A: Financial ratio: It can be defined as the relative magnitude of two selected financial values taken…

Q: A company reports the following Infommation for the year. Net credit sales $110,000 12,000 98,000…

A: Receivables turnover Ratio: The receivable turnover ratio is a kind of measuring ratio how the is…

Q: ABCD Corporation has credit sales of $10,290,000 and receivables of $1,560,000. Assume there are 365…

A: In this we have to calculate the receivable turnover ratio using the formula.

Q: A company reports the following: Sales Average accounts receivable (net) $511,000 73,000 Determine…

A: Sales = 511,000 Average Accounts Receivables (net) = 73,000

Q: A company reports the following:Sales…

A: (a)Accounts receivable turnover = Credit sales / Average accounts receivableAccounts receivable…

Q: The following data are taken from or calculated from the financial statements: Current…

A: Solution: A) 1) Accounts receivable turnover = Net Credit sales / Average accounts receivable…

Q: Assuming 77 percent of sales are on credit, what is the company's days' sales in receivables?

A: Information Provided: Net Income = $191,000 Profit Margin = 9.10% Accounts Receivable = $106,919…

Q: Los Altos, Inc. has an accounts receivable turnover of 20. What is the company's average collection…

A: Formula: Average collection period = 365 days / Accounts receivable turnover. Division of 365 days…

Q: Accounts Receivable Analysis A company reports the following: Sales $192,720 Average accounts…

A: The accounts receivable turnover ratio indicates the efficiency of a company in collecting the…

Q: Millennial Manufacturing has net credit sales for 2018 in the amount of $1,453,630, beginning…

A: Accounts receivable turnover ratio = Net Credit Sales / Average Accounts Receivables Sales in…

Q: What amount should be reported as net realizable value of accounts receivable on December 31?

A: The net realizable value of accounts receivable can be ascertained as the debit balance in the asset…

Q: The "age" of an account receivable is the length of time that it has been outstanding. At the end of…

A: Accounts receivables is the current asset that represents the money which is to be received by…

Q: Millennial Manufacturing has net credit sales for 2018 in the amount of $1,453,630, beginning…

A: Accounts receivable turnover ratio is a type of activity ratio, which is defined as the measurement…

Q: y has net sales of 1,630,200 an

A: The accounts receivable turnover ratio,   also known as the debtor’s turnover ratio, is an…

Q: If Cactus, Inc. has annual sales of $83,000, average accounts payable of $30,000, and average…

A: Sales = $83000 Account payable = $30000 Accounts receivable = $25000

Q: A company reports the following: Sales $315,360 Average accounts receivable (net) 39,420 Determine…

A: Accounts receivable turnover = ( Net Credit Sales / Average Accounts receivable ) Number of days'…

Q: A company reports the following: Sales $859,940 Average accounts receivable (net) 45,260…

A: Account Receivables turnover ratio: Account Receivables turnover ratio is mainly used to evaluate…

Q: Sheridan Company had net credit sales during the year of $1047750 and cost of goods sold of $484000.…

A: Average Accounts Receivables = (Beginning Accounts Receivables  + Ending Accounts Receivables ) /2 =…

Q: A Plus Services has the following transactions during January: Credit sales of $110,000, collections…

A: There are two types of method for recording the bad debt expense: Direct Write-Off Method: Under…

Q: On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May.…

A: Solution: Accounts Receivable are the balance of amount which is due to a company for the goods…

Q: company reports the followin Sales $890,600 Average accounts receivable (net) 44,530 Determine (a)…

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: An analyst has obtained the following information regarding ABC, Inc. Using this information, he…

A: Operating cycle is calculated as below: Now, Cash conversion cycle (CCC) will determine Days…

Q: Millennial Manufacturing has net credit sales for 2018 in the amount of $1,453,630, beginning…

A: A.  First, calculate Average accounts receivables: Average Accounts Receivables=Beginning accounts…

Q: A company reports the following Sales $1,200,000 Average accounts receivables (net) 50,000 Determine…

A: Accounts receivables are the legal enforceable claims by the company for the products supplied to…

Q: Baxley Brothers has a DSO of 23 days, and its annual salesare $3,650,000. What is its accounts…

A: Day sales outstanding=23 daysAnnual sales=$3,650,000Days per year=365 days

Q: The “age” of an account receivable is the length of time that it has been outstanding. At the end of…

A: Accounts receivable aging is the process of distinguishing open accounts receivable based on the…

Q: On April 30, Holden Company had an Accounts Receivable balance of $18,00O. During the month of May.…

A: Accounts receivables are the dues that the company is entitled to receive from credit purchasers.…

Q: Calculating the Average Collection Period Trout Lumber Yard has a current accounts receivable…

A: Given, Accounts receivable = $527,164 Total credit sales = $6,787,626 Number of days in a year = 365…

Q: The company wants to assess the account receivable outstanding at the end of December 2016. During…

A: Accounts Receivable Payment PEriod = 365/Account Receivable turnover ratio Accounts Receivable…

Q: ABCD Corporation has credit sales of $10,960,000 and receivables of $1,260,000. Assume there are 365…

A:

Q: Accounts Receivable Analysis A company reports the following: Sales $854,100 Average accounts…

A: The calculation of Accounts Receivables turnover and number of days' sales in Receivables is shown…

Q: A company has net income of $182,000, a profit margin of 9.90 percent, and an accounts receivable…

A: Days sales in receivables = Accounts receivable/credit sales *365

Q: Luna Company reported the following figur Net Credit Sales Account receivables at end of year

A: The average collection period appears to be the amount of time it takes a corporation to collect…

Q: The following data are taken from the financial statements of Colby Company. Accounts receivable…

A: Introduction: Financial statements include specific information about a company's operations and…

Q: On April 30, Gomez Services had an Accounts Receivable balance of $30,100. During the month of May,…

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: A company reports the following: Sales $1,057,770 Average accounts receivable (net) 83,950 Determine…

A: Accounts receivable turnover ratio = Net credit sales / Average Accounts Receivables where, Average…

Q: How do I find the turnover and number of days' sales in receivables?

A: a. Computation of accounts receivable turnover: Hence, the accounts receivables turnover is 27…

Q: Based on the following data for the current year, what is the number of days' sales in receivable?…

A: Calculate accounts receivable turnover:

Q: Ben Corp has the following annual information: Receivable days assumption = 55 days Payable days…

A: Forecast of account receivables formula: Revenue which was forecasted * (Receivables in days / 365…

Q: Rayhan Company has an average collection period of 55 days. The annual sales is 8,500,000. What is…

A: The average collection period indicates the period between the sale and collection/ receipt of money…