a. Calculate days sale outstanding (DSO) for 2018 and 2017. Note: Round amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). DSO for 2018 DSO for 2017 days days b. Determine the total amount that customers owe Lupin each year. Note: Round dollar amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). Amount owed in 2018 $ Amount owed in 2017 $ Amount owed in 2016 $ c. What proportion of trade receivables is doubtful each year? Note: Round percentage (your final answer) to two decimal places (for example, enter 0.65% for 0.6555%). 2018: Proportion of AR that is doubtful 2017: Proportion of AR that is doubtful 2016: Proportion of AR that is doubtful

a. Calculate days sale outstanding (DSO) for 2018 and 2017. Note: Round amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). DSO for 2018 DSO for 2017 days days b. Determine the total amount that customers owe Lupin each year. Note: Round dollar amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). Amount owed in 2018 $ Amount owed in 2017 $ Amount owed in 2016 $ c. What proportion of trade receivables is doubtful each year? Note: Round percentage (your final answer) to two decimal places (for example, enter 0.65% for 0.6555%). 2018: Proportion of AR that is doubtful 2017: Proportion of AR that is doubtful 2016: Proportion of AR that is doubtful

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 15P: Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed...

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Particulars Procter & Gamble Colgate-Palmolive Net Sales 2018 66832 15544 Accounts Receivables 2018 4686 1400 Accounts Receivables 2017 4594 1480 Average Receivables (4686+4594)/2 = 4640 (1400+1480)/2 = 1440 Accounts Receivables Turnover Ratio = Net Credit Sales ÷ Average Receivables 66832/4640 = 14.40 15544/1440 = 10.79 DSO = Accounts Receivables ÷ Net Credit Sales × 365 14.40/66832 = 25.34 10.79/15544 = 33.81 A) Identify and discuss a potential explanation for the difference between these competitors’ Accounts receivable ratios
Suppose the following information was taken from the 2025 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions) Accounts receivable (gross) Accounts receivable (net) Allowance for doubtful accounts Sales revenue Total current assets Accounts receivable turnover 2025 Answer each of the following questions. Average collection period $ 3,650 3,400 250 eTextbook and Media 32,970 7,142 2024 $4,530 4,450 80 Calculate the accounts receivable turnover and the average collection period for 2025 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) 35,470 7,304 times days Is accounts receivable a material component of the company's total current assets?
Use the following financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Ending Accounts Receivable Year Net Credit Sales 2017 $690,430 $335,250 2018 705,290 364,450 2019 770,500 406,650 A. Compute the accounts receivable turnover ratios for 2018 and 2019. Round your answers to two decimal places. 2018 times 2019 times B. Using the accounts receivable turnover, choose the statement that most closely describes the company's management of its receivables. a. The company's lending policies may be too strict. b. Collection efforts are not aggressive enough. There may be uncollectable receivables affecting the beginning and ending C. balances. d. All of the above statements may be correct. a b d
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Suppose the following information was taken from the 2025 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions) Accounts receivable (gross) Accounts receivable (net) Allowance for doubtful accounts Sales revenue Total current assets (a) Answer each of the following questions. Accounts receivable turnover 2025 $3,720 Average collection period 3,350 370 36,575 7,190 2024 $4,640 4,350 290 39,075 Calculate the accounts receivable turnover and the average collection period for 2025 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) 7,252 times days
(Accounts receivable and uncollectible accounts) The following information relates to Bedford Company’s accounts receivable: Accounts receivable balance on December 31, 2023 $ 900,000Allowance for expected credit losses balance on December 31, 2023 55,000Credit sales made in 2024 5,800,000Collections from customers on account in 2024 4,900,000Accounts receivable written off in 2024 70,000Accounts previously written off that were recovered in 2024(not included in the collections above) 6,000After grouping its receivables by geographic region, the credit risk characteristic identified as being best for determining credit losses, and estimating the expected rate of credit losses for each group, the company estimates that the total expected credit losses at December 31, 2024, will be $80,000. The allowance account is to be adjusted accordingly. Required Calculate the ending balance in Accounts Receivable, as at December 31, 2024.Calculate the Allowance for Expected Credit…
Evaluating Accounts Receivable Turnover for CompetitorsThe Procter & Gamble Company and Colgate-Palmolive Company report the following sales and accounts receivable balances. $ millions Procter & Gamble Colgate-Palmolive 2018 Net sales $66,832 $15,544 2018 Accounts receivable 4,639 1,386 2017 Accounts receivable 4,548 1,465 a. Compute the accounts receivable turnover and DSO for both companies for 2018.Note: Do not round until your final answer.Note: Round your final answers to one decimal place (for example, enter 6.8 for 6.77555). Procter & Gamble Colgate-Palmolive AR turnover Answer Answer DSO Answer Answer
The following is select financial statement information from Vortex Computing: Year Net Credit Sales Ending Accounts Receivable 2018 $1,557,200 $398,000 2019 $1,755,310 $444,400 2020 $1,865,170 $500,780 Compute the accounts receivable turnover ratios and the number of days’ sales in receivables ratios for 2019 and 2020 (round answers to two decimal places): 2019 Accounts Receivable Turnover = ["", "", "", ""] times. 2019 Days' Sales in Receivables = ["", "", "", ""] days. 2020 Accounts Receivable Turnover = ["", "", "", ""] times. 2020 Days' Sales in Receivables = ["", "", "", ""] days. What do the outcomes tell a potential investor about Vortex Computing, if 2020 industry average for accounts receivable turnover ratio is 4.00 times and days’ sales in receivables ratio is 91.25 days? It takes Vortex Computing ["", "", ""] its competitors in the industry to collect on accounts receivable. If a lender were deciding between companies,…
The following is select financial statement information from Vortex Computing: Year Net Credit Sales Ending Accounts Receivable 2018 $1,557,200 $398,000 2019 $1,755,310 $444,400 2020 $1,865,170 $500,780 Compute the accounts receivable turnover ratios and the number of days’ sales in receivables ratios for 2019 and 2020 (round answers to two decimal places): 2019 Accounts Receivable Turnover = ["", "", "", ""] times. 2019 Days' Sales in Receivables = ["", "", "", ""] days. 2020 Accounts Receivable Turnover = ["", "", "", ""] times. 2020 Days' Sales in Receivables = ["", "", "", ""] days.
The following select financial statement information from Candid Photography. CANDID PHOTOGRAPHY Year Net Credit Sales Ending Accounts Receivable 2017 $2,988,000 $1,290,450 2018 2019 3,750,860 4,000,350 1,345,600 1,546,550 Compute the accounts receivable turnover ratios and the number of days' sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What is the Average Accounts Receivable? What is the Net Credit Sales that would be used? What is the Accounts Relievable Turnover? what is the Days in Receivable Ratio?
How effective is the organization in collecting its receivables? Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60. Table 1: Hillside, Inc. Balance Sheet ($ in Millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,165.27 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S…
transportation/delivery company. (in millions) Accounts receivable (gross) Accounts receivable (net) Allowance for doubtful accounts Sales revenue Total current assets Answer each of the following questions. Accounts receivable turnover 2025 Average collection period $3,650 3,400 250 32,970 7,142 eTextbook and Media 2024 $4,530 4,450 Calculate the accounts receivable turnover and the average collection period for 2025 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation) 80 35,470 7,304 times days Is accounts receivable a material component of the company's total current assets?