Which of the following would best explain an increase in receivables turnover? A
ID: 2703460 • Letter: W
Question
Which of the following would best explain an increase in receivables turnover?
A. The company adopted new credit policies last year and began offering credit to
customers with weak credit histories
B. Due to problems with and error in its old credit scoring system, the company had accumulated
a substantial amount of uncollectible accounts and wrote off a large amount of its receivables.
Brown corporation had average days of sales outstanding of 19 days in the most recent fiscal year
Brown wants to improve its credit policies and collection practices and decrease its collection period in
the next fiscal year to match the industry average of 15 days. Credit sales in the most recent fiscal year were
$300 million, Brown expects credit sales to increase to $390 million in the next fiscal year. To achieve Brown
goal of decreasing the collection period, the change in average accounts receivable balance that must occur is
most closest to:
What does the P/E ratio measure ?
A. The multiple that the stock market places on a company's EPS
B. the relationship between dividends and market prices
C. The earnings for one common share of stock.
A ceditor most likely would consider a decrease in which of the following ratios to be positive
news?
A. Interest coverage (time interest earned)
b. Debt to Total assets
C. Return on Assets
when developing forecasts, analyst should most likely:
A. develop possibilities relying exclusively on the results of financial analysis
B. Use the results of financial analysis, analysis of other information, and judgement.
C. Aim to develop extremely pricise frocasts using the results of financial analysis
Which of the following would best explain an increase in receivables turnover?
A. The company adopted new credit policies last year and began offering credit to
customers with weak credit histories
B. Due to problems with and error in its old credit scoring system, the company had accumulated
a substantial amount of uncollectible accounts and wrote off a large amount of its receivables.
Brown corporation had average days of sales outstanding of 19 days in the most recent fiscal year
Brown wants to improve its credit policies and collection practices and decrease its collection period in
the next fiscal year to match the industry average of 15 days. Credit sales in the most recent fiscal year were
$300 million, Brown expects credit sales to increase to $390 million in the next fiscal year. To achieve Brown
goal of decreasing the collection period, the change in average accounts receivable balance that must occur is
most closest to:
Which of the following would best explain an increase in receivables turnover? The company adopted new credit policies last year and began offering credit to customers with weak credit histories Due to problems with and error in its old credit scoring system, the company had accumulated substantial amount of uncollectible accounts and wrote off a large amount of its receivables. Brown corporation had average days of sales outstanding of 19 days in the most recent fiscal year Brown wants to improve its credit policies and collection practices and decrease its collection period in the next fiscal year to match the industry average of 15 days. Credit sales in the most recent fiscal year were $300 million, Brown expects credit sales to increase to $390 million in the next fiscal year. To achieve Brown goal of decreasing the collection period, the change in average accounts receivable balance that must occur is
Explanation / Answer
B. Due to problems with and error in its old credit scoring system, the company had accumulated
a substantial amount of uncollectible accounts and wrote off a large amount of its receivables.
C. The earnings for one common share of stock.
b. Debt to Total assets
A. develop possibilities relying exclusively on the results of financial analysis
B. Due to problems with and error in its old credit scoring system, the company had accumulated
a substantial amount of uncollectible accounts and wrote off a large amount of its receivables.
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