I Online teach X a Search Show Me How Print ltem Accounts Receivable Turnover an

Question

I Online teach X a Search Show Me How Print ltem Accounts Receivable Turnover and Number of Days Sales in Receivables Financial statement data for years ending December 31 for Robinhood Company follows: 2016 2015 $7,906,000 $6,726,000 Sales Accounts receivable Beginning of year End of year a. Determine the accounts receivable turnover for 2016 and 2015. Round your answers to one decimal place 600,000 540,000 580,000 600,000 Accounts Receivable Turnover 2016 2015 and 2015. Use 365 days in a year in your computations . Round interim calculations and b. Determine the number of days sales in receivables for 2016 your final answers to one decimal place Number of Days' Sales in Receivables days 2016 2015 c. Does the change in Favorable V days accounts receivable turnover and the number of days' sales in receivables from 2015 to 2016 indicate a favorable or an unfavorable trend? Prevous Check My Work 448 PM 4/5/2018

Explanation / Answer

Req a: Accounts receivable Turnover: Net sales / Average Accounts receivable 2016 2015 Beginning Accounts receivable 600000 540000 Ending Accounts receivable 580000 600000 Average Accounts receivable 590000 570000 (Beg. +Ending AR )/2 Net Sales 7906000 6726000 Accounts receivable Turnover 13.4 11.8 Req b: Number of days sales in invntory: Number of days/ Accounts receivable turnover 2016 2015 Beginning Accounts receivable 600000 540000 Ending Accounts receivable 580000 600000 Average Accounts receivable 590000 570000 (Beg. +Ending AR )/2 Net Sales 7906000 6726000 Accounts receivable Turnover 13.4 11.8 Number of days sales in Inventory 27.24 30.93 Reqc: Favorable. Both the ratios changes in favorable direction.

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