Imagine that Fondo Event Company acquired $902,440 in total revenues in 2016. Fondo’s account receivables were $22,400 a...
Imagine that Fondo Event Company acquired $902,440 in total revenues in 2016. Fondo’s account receivables were $22,400 and $29,720 in 2015 and 2016 respectively. Based on the information given, how long does it take for Fondo, on average, to collect the accounts receivables?
Homework Answers
Accounts Receivable Turnover
= Sales/Average accounts receivables
= 902,440/[(22400+29720)/2]
= 902440/26060
= 34.63 times
Average days to collect = 365/Accounts Receivable Turnover
= 365/34.63
= 10.54 days
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and 2016 the following:
a) Receivables turnover,Inventory turnover, and
Payable turnover.
b)Receivables period,Inventory period,and Payable
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2. Discuss the changes that took place from 2015 to
2016 and suggest the ways how the company could improve its
performance
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