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The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.   20Y3 20Y2 20Y1 Accounts receivable, end of year $725,000   $650,000   $600,000   Sales on account 5,637,500   4,687,500       a.  For 20Y2 and 20Y3, determine (1) the accounts receivable 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.   20Y3 20Y2 1.  Accounts receivable turnover         2.  Number of days' sales in receivables   days   days b.  The collection of accounts receivable has  . This can be seen in both the   in accounts receivable turnover and the   in the collection period.

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.   20Y3 20Y2 20Y1 Accounts receivable, end of year $725,000   $650,000   $600,000   Sales on account 5,637,500   4,687,500       a.  For 20Y2 and 20Y3, determine (1) the accounts receivable 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.   20Y3 20Y2 1.  Accounts receivable turnover         2.  Number of days' sales in receivables   days   days b.  The collection of accounts receivable has  . This can be seen in both the   in accounts receivable turnover and the   in the collection period.

Managerial Accounting
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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The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.

  20Y3 20Y2 20Y1
Accounts receivable, end of year $725,000   $650,000   $600,000  
Sales on account 5,637,500   4,687,500      

a.  For 20Y2 and 20Y3, determine (1) the accounts receivable 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.

  20Y3 20Y2
1.  Accounts receivable turnover        
2.  Number of days' sales in receivables   days   days

b.  The collection of accounts receivable has  . This can be seen in both the   in accounts receivable turnover and the   in the collection period.

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