Financial statement data for years ending December 31 for Chiro-Solutions Company follow: 20Y2 20Υ1 $2,912,000 Sales $2,958,000 Accounts receivable: Beginning of year End of year 300,000 280,000 340,000 300,000 a. Determine the accounts receivable turnover for 20Y2 and 20Y1. b. Determine the days' sales in receivables for 20Y2 and 20Y1. Use 365 days and round to one decimal place. c. Does the change in accounts receivable turnover and the days' sales in receivables from 20Y1 to 20Y2 indicate a favorable or unfavorable change?
Financial statement data for years ending December 31 for Chiro-Solutions Company follow: 20Y2 20Υ1 $2,912,000 Sales $2,958,000 Accounts receivable: Beginning of year End of year 300,000 280,000 340,000 300,000 a. Determine the accounts receivable turnover for 20Y2 and 20Y1. b. Determine the days' sales in receivables for 20Y2 and 20Y1. Use 365 days and round to one decimal place. c. Does the change in accounts receivable turnover and the days' sales in receivables from 20Y1 to 20Y2 indicate a favorable or unfavorable change?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9E
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