Below are PT KMK projected quarterly sales for 2020. Q1 Q2 Q3 Q4 Sales 175 145 230 200 Supposed at the beginning of the year, account receivables are $250. PT KMK has a 30-day collection period. Please calculate a) cash collection in each of the four quarters! b) Rework question (a) assuming a collection period of 70 days. c) Rework question (a) assuming a collection period of 45 days. Notes: Number of days in one quarter is 90 days

Below are PT KMK projected quarterly sales for 2020. Q1 Q2 Q3 Q4 Sales 175 145 230 200 Supposed at the beginning of the year, account receivables are $250. PT KMK has a 30-day collection period. Please calculate a) cash collection in each of the four quarters! b) Rework question (a) assuming a collection period of 70 days. c) Rework question (a) assuming a collection period of 45 days. Notes: Number of days in one quarter is 90 days

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
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