Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question content area accounts receivable turnover

Question Content Area Accounts Receivable Turnover and Days' Sales in Receivables Classic Company designs, markets,...

70.2K

Verified Solution

Question

Accounting

Question Content Area Accounts Receivable Turnover and Days' Sales in Receivables Classic Company designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The companys products include such brands as Polo by Classic, Classic Purple Label, Classic, Polo Jeans Co., and Chaps. Polo Classic reported the following for two recent years: For the Period Ending Year 2 Year 1 Sales $5,898,400 $5,807,880 Accounts receivable 576,700 591,300 Assume

image Accounts Receivable Turnover and Days' Sales in Receivables Assume that accounts receivable were $525,600 at the beginning of Year 1 . a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to two decimal places. Year 2: Year 1: b. Compute the days' sales in receivables for Year 2 and Year 1. Round your final answers to one decimal place. Use 365 days per year in your calculations. c. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) - in the efficiency of collecting accounts receivable and is a(n) - change. The change in the days' sales in receivables is a(n) - change

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students