Question
In: Accounting
Brief Exercise 18-11 b (Essay) The following data are taken from the financial statements of Colby...
Brief Exercise 18-11 b (Essay)
The following data are taken from the financial statements of
Colby Company.
|
2020 |
2018 |
|||
| Accounts receivable (net), end of year | $550,000 | $540,000 | ||
| Net sales on account | 4,300,000 | 4,000,000 | ||
| Terms for all sales are 1/10, n/45 |
| 2020 | 2019 | |||||
| Accounts Receivable turnover | 7.9 | times | 7.5 | times | ||
| Average collection period | 46.2 | days | 48.7 | days | ||
(b)
What conclusions about the management of accounts receivable can be
drawn from the accounts receivable turnover and the average
collections period.
Solutions
ekkarill92 answered 11 months agoRelated Solutions
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