FINANCIAL AND MANAGERIAL ACCOUNTING
FINANCIAL AND MANAGERIAL ACCOUNTING
9th Edition
ISBN: 9781264899180
Author: Wild
Publisher: MCG
Question
Book Icon
Chapter 7, Problem 23E

(1)

To determine

Concept Introduction

Accounts Receivable Turnover Ratio: The accounts receivable turnover ratio is a financial indicator that shows how effectively a business collects the amount receivable from its customers. The ratio counts the number of times throughout a certain time frame that receivables are converted to cash. A high ratio could be a sign that a company's debt collection strategies are effective whereas a low ratio could be brought on by ineffective credit policies, and ineffective collection practices.

To Compute: The accounts receivable turnover for Year 2 and Year 3.

(2)

To determine

Concept Introduction

Accounts Receivable Turnover Ratio: The accounts receivable turnover ratio is a financial indicator that shows how effectively a business collects the amount receivable from its customers. The ratio counts the number of times throughout a certain time frame that receivables are converted to cash. A high ratio could be a sign that a company's debt collection strategies are effective whereas a low ratio could be brought on by ineffective credit policies, and ineffective collection practices.

To state: The performance of R company as compared to its competitors.

Blurred answer
Students have asked these similar questions
The following information is from the annual financial statements of Raheem Company, Year 2 $ 335,280 41,400 Net sales Accounts receivable, net (year-end) (1) Compute its accounts receivable turnover for Year 2 and Year 3. (2) Assuming its competitor has a turnover of 11, is Raheem performing better or worse at collecting receivables than its competitor? Complete this question by entering your answers in the tabs below. Year 3 $ 405,140 44,800 Required 1 Required 2 Compute its accounts receivable turnover for Year 2 and Year 3. Year 2: Year 3: Choose Numerator: Accounts Receivable Turnover Choose Denominator 7 1 1 Year 1 $ 388,000 34,800 W Accounts Receivable Turnover. Accounts receivable tumover times times
The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) B I U T₂ T² Ix 2022 $550,000 4,300,000 2022 7.9 times lil 2021 What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period. € $540,000 4,000,000 2021 46.2 days 48.7 days 7.5 times W 144 144 들 3 99 = á T ¶₁
The following information is from the annual financial statements of Raheem Company, Year 2 Year 3 $ 270,000 20,900 $ 201,000 16,700 Net sales Accounts receivable, net (year-end) (1) Compute its accounts receivable turnover for Year 2 and Year 3. (2) Assuming its competitor has a turnover of 20.5, is Raheem performing better or worse at collecting receivables than its competitor? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its accounts receivable turnover for Year 2 and Year 3. Year 2: Year 3:1 Choose Numerator: 7 1 1 Accounts Receivable Turnover Choose Denominator: (Required 1 Year 1 $ 248,000 15,400 W Accounts Receivable Turnover Accounts receivable turnover = Required 2 > times times
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Text book image
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Text book image
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning