Question

%E8-27 (similar to) Question Help Distinctive Mediation incorporated on account. Recently Distinctive reported the following furos $ Nel Credit Sales Not Receivable at end of year 2016 540.375 $ 38.400 2017 604,500 44100 Head the tourements Requirement Compute Distinctives were cables for 2018. (Hound to Fint the counts receivable mover Abbreviations : ARM rest day) recebe uover Cash Cash including cash invest shortcominvestments Pound the accounts receive mover rosto Net credits 540.375 n e XXX and outing cash d Cash for 2016 end to the nearest day A on to twee invest i rements Round Now Computer da De day in the ns c whole Chrom e briren and then clickCheck Awwer Check An a WERTY op i ab

Answer 1

Ans:

	Net Credit Sales	/	Avg.Net Account Receivable	=	AR turn
2018	540,375	/	41,250	=	13.1

Day's Sales in Receivable:

	365	/	Account Receivable Turnover Ratio	=	Day's Sales in AR
2018	365	/	13.1	=	28

Requirement:2

New collection period is shorter than the curren 30 days term. This is good​​​​ for Distinctive.