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Accounts receivable turnover and days’ sales in receivables Financial statement data for years ending December 31 for Chiro-Solutions Company follow: 20Y2 20Y1 Sales $2,912,000 $2,958,000 Accounts receivable: Beginning of year 300,000 280,000 End of year 340,000 300,000 a. Determine the accounts receivable turnover for 20Y2 and 20Yl. b. Determine the days’ sales in receivables for 20Y2 and 20Yl. Use 365 days and round to one decimal place. c. Does the change in accounts receivable turnover and the days’ sales in receivables from 20Y1 to 20Y2 indicate a favorable or unfavorable change?

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 9, Problem 9.6APE
Textbook Problem

Accounts receivable turnover and days’ sales in receivables

Financial statement data for years ending December 31 for Chiro-Solutions Company follow:

20Y2 20Y1
Sales $2,912,000 $2,958,000
Accounts receivable:
Beginning of year 300,000 280,000
End of year 340,000 300,000
  1. a. Determine the accounts receivable turnover for 20Y2 and 20Yl.
  2. b. Determine the days’ sales in receivables for 20Y2 and 20Yl. Use 365 days and round to one decimal place.
  3. c. Does the change in accounts receivable turnover and the days’ sales in receivables from 20Y1 to 20Y2 indicate a favorable or unfavorable change?

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Chapter 9 Solutions

Accounting
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