Question

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Brief Exercise 18-11 al-a2 The following data are taken from the financial statements of Colby Company. 2019 Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 2020 $555,000 4,033,250 $550,000 3,065,250 Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $455,000. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Accounts receivable turnover times times LINK TO TEXT Compute for each year the average collection period. At the end of 2018, accounts receivable was $455,000. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Average collection period days days

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4 homework questions, Help !

Answer 1

Avg Taccount receivable turnovee = sales an B UT Average account receivable particulars oopon 2020 2019 sales ca 9000 10 $4,033,250 $3,065, 250 Accounts receivable (8555000th (550,000+ 455,000) 4Cb) 550,000 → $502,500. $552,800 Account receivable oors- turnover -(a/b) 17.3 times 6.1 times 2 Average collection period I 365 . - Account receivable turnover Particulars no Days Ar turnover za Avg collection period 2020 2019. 365 nowa 365 73 - 26.1 50 days.) on 59.8 days E 1 2)6 Conclusions: no Account receivable turnover has been increased during the year 2020 and the average collection period has been reduced fro during the year 2020. so that account receivable can be collected within less number of days. Inventory tumorer cost of goods sold Average inventory cost of goods sold Beginning Inventory & Purchases es Ending inventory.

G a 2020. Particulary 2019. cost of good sold 1940,000+ 885000+ 4 a os 4,392,000 Gslu 4,6 17,500- 990,000 S 1020,000 S $4,3 12,000 $4,562,500 Average inventory ( 6020,000+ ) (b) ; 940,000 quo,ooo = $980,000 V N D SA tomter 1 svormt Inventory tumovel 4.4 times yet times Talb) 2020 AZ boisso pays in inventory & 365 Inventory turnover. -Particular 208 20/2019 pays -ca of 365 ron 365 Inventory tumorer (b) yitimes u'ttines pays in inventory (a/b) 183days (77.7 days CO) wood as shown 829 days Question -y is same as Question ( 3 0 .

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