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 has been 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 average accounts receivable turnover of Company H and Incorporation L.

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Answer 1

Question

Chapter 9, Problem 9.29EX

(a)

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 has been 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 average accounts receivable turnover of Company H and Incorporation L.

(b)

To determine

To identify: Whether Company H or Incorporation L has the higher average accounts receivable turnover ratio.

(c)

To determine

To explain: The reason for the difference in average accounts receivable turnover ratio between Company H and Incorporation L.

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Use the data in Exercises 9-27 and 9-28 to analyze the accounts receivable turnover ratios of the Campbell Soup Company and American Eagle Outfitters, Inc.a. Compute the average accounts receivable turnover ratio for Campbell Soup and American Eagle for the years shown in Exercises 9-27 (See attachment) and 9-28 (See attachment).b. Does Campbelll Soup or American Eagle have the higher average accounts receivable turnover ratio?c. Explain why the average turnover ratios are different in (b).

10. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B Compute the number of days sales in receivables ratios for each company for 2018 and 2019 C. Determine which company is the better investment and why. Round answers to two decimal places.

Mifflin Company reported the following for the current year: Net sales Cost of goods sold Beginning balance in accounts receivable Ending balance in accounts receivable Compute (a) accounts receivable turnover and (b) days' sales uncollected. Hint. Accounts receivable turnover uses average accounts receivable, and days' sales uncollected uses the ending balance in accounts receivable. Accounts Receivable Turnover Compute the accounts receivable turnover. Complete this question by entering your answers in the tabs below. Days Sales Uncollected Numerator: " $ 62,700 41,000 1 1 14,600 6,300 Denominator: Accounts Receivable Turnover Accounts Receivable Turnover Accounts receivable turnover times

Answer 2

Question

Chapter 9, Problem 9.29EX

(a)

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 has been 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 average accounts receivable turnover of Company H and Incorporation L.

(b)

To determine

To identify: Whether Company H or Incorporation L has the higher average accounts receivable turnover ratio.

(c)

To determine

To explain: The reason for the difference in average accounts receivable turnover ratio between Company H and Incorporation L.

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Answer 3

Question

Chapter 9, Problem 9.29EX

(a)

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 has been 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 average accounts receivable turnover of Company H and Incorporation L.

(b)

To determine

To identify: Whether Company H or Incorporation L has the higher average accounts receivable turnover ratio.

(c)

To determine

To explain: The reason for the difference in average accounts receivable turnover ratio between Company H and Incorporation L.

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Answer 4

Question

Chapter 9, Problem 9.29EX

(a)

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 has been 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 average accounts receivable turnover of Company H and Incorporation L.

(b)

To determine

To identify: Whether Company H or Incorporation L has the higher average accounts receivable turnover ratio.

(c)

To determine

To explain: The reason for the difference in average accounts receivable turnover ratio between Company H and Incorporation L.

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Answer 5

Chapter 9, Problem 9.29EX

(a)

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 has been 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 average accounts receivable turnover of Company H and Incorporation L.

(b)

To determine

To identify: Whether Company H or Incorporation L has the higher average accounts receivable turnover ratio.

(c)

To determine

To explain: The reason for the difference in average accounts receivable turnover ratio between Company H and Incorporation L.

Answer 6

Chapter 9, Problem 9.29EX

(a)

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 has been 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 average accounts receivable turnover of Company H and Incorporation L.

Answer 7

Chapter 9, Problem 9.29EX

(a)

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 has been 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 average accounts receivable turnover of Company H and Incorporation L.

Answer 8

(b)

To determine

To identify: Whether Company H or Incorporation L has the higher average accounts receivable turnover ratio.

Answer 9

(b)

To determine

To identify: Whether Company H or Incorporation L has the higher average accounts receivable turnover ratio.

Answer 10

(c)

To determine

To explain: The reason for the difference in average accounts receivable turnover ratio between Company H and Incorporation L.

Answer 11

(c)

To determine

To explain: The reason for the difference in average accounts receivable turnover ratio between Company H and Incorporation L.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author calculates the average accounts receivable turnover of Company H and Incorporation L.

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To identify: Whether Company H or Incorporation L has the higher average accounts receivable turnover ratio.

To explain: The reason for the difference in average accounts receivable turnover ratio between Company H and Incorporation L.

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Chapter 9 Solutions