Sat 11:40 PM Help cory Bookmarks Window v2.cengagenow.com Calculator Print Item Show Me How eBook Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Υ1 20Υ2 20Υ3 $600,000 $650,000 $725,000 Accounts receivable, end of year 4,687,500 5,637,500 Sales on account a. For 20Y2 and 20Y3, determine (1) the accounts receiva ble turnover and (2) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. 20Υ2 20Υ3 1. Accounts receivable turnover days days 2. Number of days' sales in receivables < b. The collection of accounts receivable has improved in accounts receivable turnover and the . This can be seen in both the increase in the collection period. decrease Feedback Check My Work a.1. Divide net sales by average accounts receivable. Average Accounts receivable (Beginning Accounts Receivable + Ending Accounts Receivable) + 2. a.2. Divide average accounts receivable by average daily sales on account. Average ACCounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable)+ 2. Average daily sales on account Net Sales+365 days. b.Consider the relationship of the accounts involved. Consider the effects of the changes on the business. Check My Work Previous Next

Question
Sat 11:40 PM
Help
cory
Bookmarks Window
v2.cengagenow.com
Calculator
Print Item
Show Me How
eBook
Accounts Receivable Analysis
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.
20Υ1
20Υ2
20Υ3
$600,000
$650,000
$725,000
Accounts receivable, end of year
4,687,500
5,637,500
Sales on account
a. For 20Y2 and 20Y3, determine (1) the accounts receiva ble turnover and (2) the number of days' sales in receivables. Round interim calculations
to the nearest dollar and final answers to one decimal place. Assume a 365-day year.
20Υ2
20Υ3
1. Accounts receivable turnover
days
days
2. Number of days' sales in receivables
<
b. The collection of accounts receivable has improved
in accounts receivable turnover and the
. This can be seen in both the increase
in the collection period.
decrease
Feedback
Check My Work
a.1. Divide net sales by average accounts receivable. Average Accounts receivable (Beginning Accounts Receivable + Ending Accounts Receivable) + 2.
a.2. Divide average accounts receivable by average daily sales on account. Average ACCounts receivable = (Beginning Accounts Receivable + Ending Accounts
Receivable)+ 2. Average daily sales on account Net Sales+365 days.
b.Consider the relationship of the accounts involved. Consider the effects of the changes on the business.
Check My Work
Previous
Next

Image Transcription

Sat 11:40 PM Help cory Bookmarks Window v2.cengagenow.com Calculator Print Item Show Me How eBook Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Υ1 20Υ2 20Υ3 $600,000 $650,000 $725,000 Accounts receivable, end of year 4,687,500 5,637,500 Sales on account a. For 20Y2 and 20Y3, determine (1) the accounts receiva ble turnover and (2) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. 20Υ2 20Υ3 1. Accounts receivable turnover days days 2. Number of days' sales in receivables < b. The collection of accounts receivable has improved in accounts receivable turnover and the . This can be seen in both the increase in the collection period. decrease Feedback Check My Work a.1. Divide net sales by average accounts receivable. Average Accounts receivable (Beginning Accounts Receivable + Ending Accounts Receivable) + 2. a.2. Divide average accounts receivable by average daily sales on account. Average ACCounts receivable = (Beginning Accounts Receivable + Ending Accounts Receivable)+ 2. Average daily sales on account Net Sales+365 days. b.Consider the relationship of the accounts involved. Consider the effects of the changes on the business. Check My Work Previous Next

Expert Answer

Want to see the step-by-step answer?

See Answer

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Answer
*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.
Tagged in
BusinessAccounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Q: Suppose your company sells services of $270 in exchange for $155 cash and $115 on account.  Required...

A: Operating activities: Operating activities include cash inflows and outflows from business operation...

Q: I am resubmitting this question as it was not fully answered and it did not have the correct answers...

A: 1. As per general accepted accounting principles, the absorption method is followed in the preparati...

Q: What does the concept "substance over form" stand for?  Can you provide me with some examples?

A: Substance over form: It is an accounting concept, which means that the business must record those tr...

Q: I need help solving this problem. The picture attached is the information which was given. I copy an...

A: Statement of cost of goods manufactured: It is a statement which reports the detailed cost breakup o...

Q: O 3Depreciation calculation methods Millco, Inc., acquired a machine that cost $1,200,000 early in 2...

A: a.Calculate depreciation expense:Annual Depreciation = (Cost - Salvage Value) / Expected useful life...

Q: On January 1, 2019, Roosevelt Company purchased 12% bonds having a maturityvalue of $500,000 for $53...

A: Prepare amortization schedule.

Q: The two independent cases are listed below:    Case A   Case B     Year 2   Year 1   Year 2   Y...

A: Cash flows from operating activities:  Cash flows from operating activities refer to the cash receiv...

Q: The net income of F.F.  Inc., amounted to $1,920.000 for the current year. a. Compute the amount of ...

A: Note: Given net income is “$1,920.000” but it is considered as “$1,920,000”. The reason is, if the n...

Q: Income is taxable, unless specifically included in the IRS.  What are some examples of tax exclusion...

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs ...