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HELP PLEASE! Accounting problem solve The following data are taken from the fina

ID: 2597371 • Letter: H

Question

HELP PLEASE!

Accounting problem solve The following data are taken from the financial statements of Phacoab Company. 2017 2016 Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 577,400 607,500 4,544,000 3,912,000 Compute for each year the accounts receivable turnover. At the end of 2015, accounts receivable was $575,500. (Round answers to 1 decimal place, e.g. 12.5.) 2017 2016 Accounts receivable turnover times times Compute for each year the average collection period. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation) 2017 2016 Average collection period days days

Explanation / Answer

2017

2016

Accounts receivables

577400

607500

sales

4544000

3912000

accounts receivables turnover ratio

sales/average accounts receivables

4544000/3326450

7.6698456

6.7863648

average accounts receivables for 2017

(577400+6075500)/2

592450

average accounts receivables for 2016

(577400+575500)/2

576450

2017

2016

average collection period in days

365/accounts receivable turnover ratio

47.588963

53.784317

2017

2016

Accounts receivables

577400

607500

sales

4544000

3912000

accounts receivables turnover ratio

sales/average accounts receivables

4544000/3326450

7.6698456

6.7863648

average accounts receivables for 2017

(577400+6075500)/2

592450

average accounts receivables for 2016

(577400+575500)/2

576450

2017

2016

average collection period in days

365/accounts receivable turnover ratio

47.588963

53.784317