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Category > Accounting Posted 25 Sep 2017 My Price 5.00

Blum Company

PE 9-6A Accounts receivable turnover and number of days’ sales in receivables

Financial statement data for years ending December 31 for Blum Company are shown below.

 

2012

2011

Net sales

$2,430,000

$1,920,000

Accounts receivable:

    

Beginning of year

180,000

120,000

End of year

225,000

180,000

a. Determine the accounts receivable turnover for 2012 and 2011.

b. Determine the number of days’ sales in receivables for 2012 and 2011. Round to one decimal place.

c. Does the change in accounts receivable turnover and the number of days’ sales in receivables from 2011 to 2012 indicate a favorable or an unfavorable trend?

Answers

Maurice Tutor
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Status NEW Posted 25 Sep 2017 11:09 PM My Price 5.00

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