Question

Receivables Management Average C.. Receivables.. Company Big Store Year 2012 $5 $70 2013 $4 $84 2014 $5 $78 $5 $71 $5 $70 $5 Average a.. $6,934 $5,730 $6,201 $6,728 $6,723 $6,353 $5,513 $4,617 $5,065 $4,800 $5,582 $5,101 2015 2016 2017 2018 2019 2020 2021 $70 $5 $77 $4 $88 $4 Net sales $485,873 $482,130 $485,651 $476,294 $468,651 $446,950 $421,849 $408,085 $526,936 $383,318 $308,867 $327,933 $322,747 $316,796 $325,782 $310,511 $299,511 $290,476 $371,056 $270,540 $104 $5 $80 Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc Abc 2012 $7 $55 Discount Goods 2013 $6 $64 2014 $4,866 $6 $66 2015 $3 $141 2016 $2 $195 2017 $2 2018 $2,240 $1,674 $1,770 $1,949 $2,961 $3,002 $3,855 $2 2019 $4 $175 $154 $98 $124 $70 2020 $3 2021 $5

Answer 1

receivable turnover ratio = net credit sales/average accounts receivable

(1) for Big Store,

for 2012:

receivables turnover ratio = $485873/$6934 = 70.07 times

for 2021:

receivables turnover ratio = $383318/$4800 = 79.86 times

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(2) for Discount Goods,

for 2012:

receivables turnover ratio = $308867/$5582 = 55.33 times

for 2021:

receivables turnover ratio = $270540/$3855 = 70.18 times