Question

The Second Cup is a Canadian specialty coffee retailer with over 350 cafés that serve the needs of thousands of guests daily. Its annual reports include the following details (in thousands of Canadian dollars):

2015
Net sales: $36,238
Accounts receivable: $5,156
Allowance for doubtful accounts: $1,706
2014
Net sales: $27,497
Accounts receivable: $5,146
Allowance for doubtful accounts: $1,005
2013
Net sales: $27,345
Accounts receivable: $5,015
Allowance for doubtful accounts: $657
2012
Net sales: $26,385
Accounts receivable: $4,813
Allowance for doubtful accounts: $274
2011
Net sales: $25,554
Accounts receivable: $5,651
Allowance for doubtful accounts: $133
2010
Net sales: $25,689
Accounts receivable: $5,959
Allowance for doubtful accounts: $55
1-a.
Determine the receivables turnover ratio for each year 2011 - 2015. (Round the final answers to 2 decimal places.)

1-b.
Determine the average collection period for each year 2011 - 2015. (Use 365 days a year. Round the intermediate calculations to 2 decimal places and the final answers to the nearest whole number.)

Answer 1

Recewables Turnover Ratio - Net weedit Jabe Average Accounts Recavable Net credit cales = fales-Sales entwan - Cash sales Average Accounts Recewable - Opening Accommité + Closing Accounta Redivable Recelleable ances jany allowances are gieen, dedust tlom] for 2011 lin thout Revivable Twinoull Ratio = 294495 Netsales - Bands) Opening AlR-allowances +Claire A/R - Allow- 2 =) 95,554 22 25 554 = $4.47 (5,959 - 55)+(5,651-133/2 5771 for 2012 = 26,385 :) 26385. =)$5.25 5028.5 (5 651-133)+(4813 -274) for 2013 = 27345 4813-274)+6015-657) =) 27345 =$2.96 9225.5 - 27497 =$3.05 for 2014 = 27497 5019-657) +(5 176-1005) 90015 2 $9.56 For 2015= 362 38 (5146-1005) +(5156-1906). 36238 ) 3795.5 10

Average Collection period = _ 365 days Average Receivable' Turneuer Ratio for year 2011 - 365 3 8165 days 4 PAL folyear 2012 = 6 lays =365 5125 for year 2013 - 365 » 123.31 days for year 2019 = 365 > 11967 daya for year 2015 - 365 - 38.17 dayo A 9.56