The initial analysis should include the following:The ratio equationThe calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook. Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result or a result that needs improving.Use citations to cite any outside sources used.The original post should include at least three (3) sentences but no more than seven (7) sentences. Page 317Exercise 8-15 Liquid assets and accounts receivable e A1 0Barga Co.'s net sales for Year 1 and Year 2 are $730,00o0 and $1,095,000, respectively. Its year-endbalances of accounts receivable follow: Year 1, $65,00o; and Year 2, $123,000.a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal.b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?

Days' Sales Uncollected = (Accounts receivable / Net Sales) x 365 days

Page 317 Exercise 8-15 Liquid assets and accounts receivable O A10 Barga Co.'s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $65,00o; and Year 2, $123,000. a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?

Page 317 Exercise 8-15 Liquid assets and accounts receivable O A10 Barga Co.'s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $65,00o; and Year 2, $123,000. a. Compute its days' sales uncollected at the end of each year. Round the number of days to one decimal. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.4BE: Accounts receivable analysis A company reports the following: Sales 3,150,000 Average accounts...

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