Obj. 3 The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30. Accounts receivable, end of year Sales Year 3 SHOW ANSWER $ 450,000 2,640,000 Year 2 $ 375,000 1,957,500 Year 1 $300,000 a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the days' sales in receivables. Round to nearest dollar and one decimal place. b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

Obj. 3 The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30. Accounts receivable, end of year Sales Year 3 SHOW ANSWER $ 450,000 2,640,000 Year 2 $ 375,000 1,957,500 Year 1 $300,000 a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the days' sales in receivables. Round to nearest dollar and one decimal place. b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9E

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