Accounts receivable turnover Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period. Average collection period: Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average. To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

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Answer 1

Question

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

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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) 2022 $550,000 2022 2021 4,300,000 4,000,000 7.9 times $540,000 2021 7.5 times 46.2 days 48.7 days What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.

The following data are taken from the financial statements of Sheffield Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 (a1) X Your answer is incorrect. 2022 $555,000 3,997,500 2021 $470,000 3,122,250 Compute for each year the accounts receivable turnover. At the end of 2020, accounts receivable (net) was $435,000. (Round answers to 1 decimal place, e.g. 1.6.)

Suppose the 2017 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.40 billion at the beginning of the year and $3.54 billion at the end of the year. Compute 3M Company's receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.) times Accounts receivable turnover ratio SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL Compute 3M Company's average collection period for accounts receivable in days. (Round answer to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Average collection period days

Answer 2

Question

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

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Answer 3

Question

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Answer 6

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

Answer 7

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

Answer 8

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

Answer 9

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

Answer 10

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Answer 11

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Answer 12

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Answer 13

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Answer 15

Ch. 8 - What is the difference between an account...Ch. 8 - What are some common types of receivables other...Ch. 8 - What are the essential features of the allowance...Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Tawnya Dobbs, the vice president of sales for...Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

Solution Summary: The author calculates the accounts receivable turnover ratio of Company CS and Corporation VF.

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To calculate: The average collection period of Company CS, and Corporation VF for 2014.

To conclude: The Efficiency of management in handling accounts receivable.

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