se the following selected financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Year Net Credit Sales Ending Accounts Receivable 2017 $687,430 $332,250 2018 705,290 362,450 2019 769,500 403,650 A. Compute the number of days’ sales in receivables ratios for 2018 and 2019. Round your answers to two decimal places. 2018 fill in the blank 1 days 2019 fill in the blank 2 days B. Using the sales in accounts receivable, choose the statement that most closely describes the company's management of its receivables. a. The company collects its accounts slowly, and the days are increasing. b. This may be leave the company unable to pay current debt owed to a lender. c. The company may need to be more aggressive with its receivable collection procedures. d. All of the above statements may be correct.
se the following selected financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Year Net Credit Sales Ending Accounts Receivable 2017 $687,430 $332,250 2018 705,290 362,450 2019 769,500 403,650 A. Compute the number of days’ sales in receivables ratios for 2018 and 2019. Round your answers to two decimal places. 2018 fill in the blank 1 days 2019 fill in the blank 2 days B. Using the sales in accounts receivable, choose the statement that most closely describes the company's management of its receivables. a. The company collects its accounts slowly, and the days are increasing. b. This may be leave the company unable to pay current debt owed to a lender. c. The company may need to be more aggressive with its receivable collection procedures. d. All of the above statements may be correct.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 8PB: The following select financial statement information from Vortex Computing. Compute the accounts...
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Question
se the following selected financial statement information from Black Water Industries.
| BLACK WATER INDUSTRIES | ||
| Year | Net Credit Sales |
Ending Accounts Receivable |
| 2017 | $687,430 | $332,250 |
| 2018 | 705,290 | 362,450 |
| 2019 | 769,500 | 403,650 |
A. Compute the number of days’ sales in receivables ratios for 2018 and 2019. Round your answers to two decimal places.
2018 fill in the blank 1 days
2019 fill in the blank 2 days
B. Using the sales in accounts receivable, choose the statement that most closely describes the company's management of its receivables.
| a. | The company collects its accounts slowly, and the days are increasing. |
| b. | This may be leave the company unable to pay current debt owed to a lender. |
| c. | The company may need to be more aggressive with its receivable collection procedures. |
| d. | All of the above statements may be correct. |
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