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. To calculate: The accounts receivable turnover for Year 2 and Year 1.

Question

Analyze DISH Network DISH Network Corporation (DISH) provides satellite-based entertainment services to residential and business customers. Services are billed and collected on a monthly basis. DISH Network reported the following (in millions) for two recent years: 20Y4 20Y3 Sales $15,034 $15,069 Accounts receivable: Beginning of year 864 951 End of year 753 864 a. Determine the accounts receivable turnover for 20Y3 and 20Y4. Round to one decimal place. 20Y3 20Y4 Accounts Receivable Turnover fill in the blank 1 fill in the blank 2 b. Compute the number of days’ sales in receivables for 20Y3 and 20Y4. Use 365 days and round all calculations to one decimal place. 20Y3 20Y4 Number of Days’ Sales in Receivables fill in the blank 3 days fill in the blank 4 days c. The change in the accounts receivable turnover from 20Y3 to 20Y4 indicates a(n) in the efficiency of collecting accounts receivable and is a(n) trend. The change…

Answer 1

Question

Chapter 9, Problem 9.7CP

(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 has been collected during a particular period.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

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 day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

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Analyze DISH Network DISH Network Corporation (DISH) provides satellite-based entertainment services to residential and business customers. Services are billed and collected on a monthly basis. DISH Network reported the following (in millions) for two recent years: 20Y4 20Y3 Sales $15,034 $15,069 Accounts receivable: Beginning of year 864 951 End of year 753 864 a. Determine the accounts receivable turnover for 20Y3 and 20Y4. Round to one decimal place. 20Y3 20Y4 Accounts Receivable Turnover fill in the blank 1 fill in the blank 2 b. Compute the number of days’ sales in receivables for 20Y3 and 20Y4. Use 365 days and round all calculations to one decimal place. 20Y3 20Y4 Number of Days’ Sales in Receivables fill in the blank 3 days fill in the blank 4 days c. The change in the accounts receivable turnover from 20Y3 to 20Y4 indicates a(n) in the efficiency of collecting accounts receivable and is a(n) trend. The change…

Knight Roundtable Co. had annual credit sales of $1,080,000 and an average collection period of 32 days in 2018. Assume a 360-day year. What were the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.60 per unit.

Answer 2

Question

Chapter 9, Problem 9.7CP

(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 has been collected during a particular period.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

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 day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.7CP

(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 has been collected during a particular period.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

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 day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 9.7CP

(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 has been collected during a particular period.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

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 day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.7CP

(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 has been collected during a particular period.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

(2)

To determine

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 day’s sales in receivables at the end of Year 2 and Year 1.

(3)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Answer 6

Chapter 9, Problem 9.7CP

(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 has been collected during a particular period.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

Answer 7

Chapter 9, Problem 9.7CP

(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 has been collected during a particular period.

To calculate: The accounts receivable turnover for Year 2 and Year 1.

Answer 8

(2)

To determine

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 day’s sales in receivables at the end of Year 2 and Year 1.

Answer 9

(2)

To determine

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 day’s sales in receivables at the end of Year 2 and Year 1.

Answer 10

(3)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Answer 11

(3)

To determine

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Answer 12

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Solution Summary: The author explains accounts receivable turnover, which is calculated by dividing the net credit sales by the average amount of net accounts.

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 day’s sales in receivables at the end of Year 2 and Year 1.

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Chapter 9 Solutions

Solution Summary: The author explains accounts receivable turnover, which is calculated by dividing the net credit sales by the average amount of net accounts.

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 day’s sales in receivables at the end of Year 2 and Year 1.

To conclude: The Efficiency of Incorporation A’s management in collecting accounts receivables.

Chapter 9 Solutions

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 day’s sales in receivables at the end of Year 2 and Year 1.