Question

Accounts Receivable Anal The following account balances are taken from the records of the way Travel Agency December 11 2017 2016 Accounts receivable $100,000 $150,000 3600,000 et credit ses 300.000 Taraw extends cred tem requiring payment 60 days with discount for early payment Required: ( 360 days in a year) 1. Forway's accounts receivable turnover ratio for 2017 and 2016, respectively, we 2. Its number of days sin receivables for 2017 and 2016, respectively, we 3. The average age of receivable 2016 the crede period. The company may decide les which seems to be the case here. However, the company may find that showing Previous

Answer 1

Account Receivable Net dalea - Turmover X100 Average Accounts Receivable Average Accoumb Receivable Beginning + Ending Receivable 2 2017 - 2016 Average Account Receivable 100000+ 150000 80000 + 10000 2 3 125000 90000 Accoumb Receivable Turnover 6,00000 125000 4.8 times) 1 540000 90,000 times) » 6

Number of days Jela in receivable 360 Accounts Receivable Turmover 2012 2016 360 360 No. of days Jalled im receivable 4.8 » [75day 60 days
3. i) Less

ii) high

iii) Increases

iv) more

v) less