FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Shiplt Corporation reported the following rounded amounts (in millions):
2015
$ 5,100
(290)
$4,810
$37,200
Accounts Receivable.
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
Net Sales (assume all on credit)
Required:
Receivables Turnover Ratio
Days to Collect
2016
$ 5,395
1. Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round intermediate
calculations. Round your final answers to 1 decimal place.)
times
days
• Improvement
Decline
(285)
$ 5,110
$39,000
2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2015
when the turnover was 8.8?
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Transcribed Image Text:Shiplt Corporation reported the following rounded amounts (in millions): 2015 $ 5,100 (290) $4,810 $37,200 Accounts Receivable. Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) Required: Receivables Turnover Ratio Days to Collect 2016 $ 5,395 1. Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.) times days • Improvement Decline (285) $ 5,110 $39,000 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2015 when the turnover was 8.8?
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