Homework Answers
Days receivable outstanding or Days sales uncollected can be calculated using formula
Days sales uncollected = Account receivable*365/sales
For Hasbro, Days sales uncollected = 990*365/3875 = 93.25 days
For Mattel, Days sales uncollected = 834*365/4595 = 66.25 days
Days sales uncollected reflects days required for the company to collect its pending cash from the buyer of the company, So less is the Days sales uncollected, more the cash company have to invest in working capital. It implies that company is more efficient in collected the cash from the buyer. So Mattel is doing a better job in collecting their receivable from the buyers.
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created by Ann Parsons JESTION #6 $3875 million in sales and S990 million in accounts receivable....
In april, Alexander inc. had $3,875 million in sales and $990 million in accounts receivable. For...
In april, Alexander inc. had $3,875 million in sales and $990 million in accounts receivable. For the same period, mattel had $4,595 million in sales and $834 million in account receivable. calaculate the days sales uncollected for both companies. a) which company appears to be doing better job in managing collection of its receivables (all other things assumed to be equal)? b) explain and justify your answer with calculation of at least two relevant ratios you have learned in this...
Accounts receivable management This table, shows that Blair Supply had an end-of-year accounts receivable balance of...
Accounts receivable management This table, shows that Blair Supply had an end-of-year accounts receivable balance of $299,875. The table also shows how much of the receivables balance originated in each of the previous six months. The company had annual sales of $2.40 million and it normally extends 30-day credit terms to its customers. a. Use the year-end total to evaluate the firm's collection system. b. If 70% of the firm's sales occur between July and December, would this affect the...
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables...
Route Canal Shipping Company has the following schedule for
aging of accounts receivable:
Age of Receivables
April 30, 20X1
(1)
(2)
(3)
(4)
Month of
Sales
Age of
Account
Amounts
Percent of
Amount Due
April
0–30
$
253,750
_______
March
31–60
145,000
_______
February
61–90
217,500
_______
January
91–120
108,750
_______
Total receivables
$
725,000
100%
a. Calculate the percentage of amount due for each
month.
b. If the firm had $1,740,000 in credit sales over
the four-month period, compute...
Calculate the accounts receivable turnover and average collection period. Assume that average net accounts receivable were...
Calculate the accounts receivable turnover
and average collection period. Assume that average net accounts
receivable were $325,000. (Use 365 days for
calculation. Round average collection period to 1 decimal place,
e.g. 15.1.)
Question 14 0.67/1 View Policies Show Attempt History Current Attempt in Progress During its first year of operations, Sandhill Company had credit sales of $3,900,000, of which $410,000 remained uncollected at year-end. The credit manager estimates that $23,400 of these receivables will become uncollectible. Your answer is correct....
The Manana Corporation had sales of $81.3 million this year. Its accounts receivable balance averaged $3.3...
The Manana Corporation had sales of $81.3 million this year. Its accounts receivable balance averaged $3.3 million. How long, on average, does it take the firm to collect on its sales? (Hint: Use 365 days for a year.) The collection period is ____days. (Round to one decimal place.)
Leggett & Platt reported sales of $7,982 million. It also reported accounts receivable (net of an...
Leggett & Platt reported sales of $7,982 million. It also reported accounts receivable (net of an allowance for doubtful accounts of $36 million) of $617 million at the beginning of the year and accounts receivable (net of an allowance for doubtful accounts of $36) of $676 million at the end of the year. Calculate the average days that gross receivables were outstanding for the year.
Route Canal Shipping Company has the following schedule for aging of accounts receivable: (4) Percent of...
Route Canal Shipping Company has the following schedule for aging of accounts receivable: (4) Percent of Amount Due Age of Receivables April 30, 20X1 (1) (2) (3) Month of Age of Sales Account Amounts April 0-30 $244,640 March 31-60 122,320 February 61-90 183,480 January 91-120 61,160 Total receivables $611,600 100% a. Calculate the percentage of amount due for each month. Percent of Amount Due Month of Sales April March February January Total receivables 100 b. If the firm had $1,668,000...
Route Canal Shipping Company has the following schedule for aging of accounts receivable: (4) Percent of...
Route Canal Shipping Company has the following schedule for aging of accounts receivable: (4) Percent of Amount Due Age of Receivables April 30, 20X1 (1) (2) (3) Month of Age of Sales Account Amounts April 0-30 $ 201,390 March 31-60 115,080 February 61-90 172,620 January 91-120 86,310 Total receivables $ 575,400 100% a. Calculate the percentage of amount due for each month. Percent of Amount Due % % Month of Sales April March February January Total receivables % % 100...
Δεy ιυιιμαι αιινε μguιεο ιυι Ημμιε αιια υυυυιε ιυιιυνν. $ millions Accounts receivable Net sales Apple...
Δεy ιυιιμαι αιινε μguιεο ιυι Ημμιε αιια υυυυιε ιυιιυνν. $ millions Accounts receivable Net sales Apple Current Year Prior Year $ 17,874 $ 15,754 229, 234 215,639 Google Current Year Prior Year $ 18,336 $14,137 1 10,855 90, 272 Required: 1. Compute days' sales uncollected for (a) Apple and (b) Google for the current and prior years. 2. Which company had more success collecting receivables? Complete this question by entering your answers in the tabs below. Required 1 Required 2...
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivable...
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivable ( 1) ( 2 ) ( 3 ) ( 4 ) Month of Sales Age of Account Amounts % of amount due April 0-30 $195,360 March 31-60 $97,680 February 61-90 $122,100 January 91-120 $73,260 Total receivables $488,400 100% a. Calculate the percentage of amount due for each month b. If the firm had $1,584,000 in credit sales over the four-month period, compute the average...
Accounts receivable management This table, shows that Blair Supply had an end-of-year accounts receivable balance of $299,875. The table also shows how much of the receivables balance originated in each of the previous six months. The company had annual sales of $2.40 million and it normally extends 30-day credit terms to its customers. a. Use the year-end total to evaluate the firm's collection system. b. If 70% of the firm's sales occur between July and December, would this affect the...
Route Canal Shipping Company has the following schedule for
aging of accounts receivable:
Age of Receivables
April 30, 20X1
(1)
(2)
(3)
(4)
Month of
Sales
Age of
Account
Amounts
Percent of
Amount Due
April
0–30
$
253,750
_______
March
31–60
145,000
_______
February
61–90
217,500
_______
January
91–120
108,750
_______
Total receivables
$
725,000
100%
a. Calculate the percentage of amount due for each
month.
b. If the firm had $1,740,000 in credit sales over
the four-month period, compute...
Calculate the accounts receivable turnover
and average collection period. Assume that average net accounts
receivable were $325,000. (Use 365 days for
calculation. Round average collection period to 1 decimal place,
e.g. 15.1.)
Question 14 0.67/1 View Policies Show Attempt History Current Attempt in Progress During its first year of operations, Sandhill Company had credit sales of $3,900,000, of which $410,000 remained uncollected at year-end. The credit manager estimates that $23,400 of these receivables will become uncollectible. Your answer is correct....
Route Canal Shipping Company has the following schedule for aging of accounts receivable: (4) Percent of Amount Due Age of Receivables April 30, 20X1 (1) (2) (3) Month of Age of Sales Account Amounts April 0-30 $244,640 March 31-60 122,320 February 61-90 183,480 January 91-120 61,160 Total receivables $611,600 100% a. Calculate the percentage of amount due for each month. Percent of Amount Due Month of Sales April March February January Total receivables 100 b. If the firm had $1,668,000...
Route Canal Shipping Company has the following schedule for aging of accounts receivable: (4) Percent of Amount Due Age of Receivables April 30, 20X1 (1) (2) (3) Month of Age of Sales Account Amounts April 0-30 $ 201,390 March 31-60 115,080 February 61-90 172,620 January 91-120 86,310 Total receivables $ 575,400 100% a. Calculate the percentage of amount due for each month. Percent of Amount Due % % Month of Sales April March February January Total receivables % % 100...
Δεy ιυιιμαι αιινε μguιεο ιυι Ημμιε αιια υυυυιε ιυιιυνν. $ millions Accounts receivable Net sales Apple Current Year Prior Year $ 17,874 $ 15,754 229, 234 215,639 Google Current Year Prior Year $ 18,336 $14,137 1 10,855 90, 272 Required: 1. Compute days' sales uncollected for (a) Apple and (b) Google for the current and prior years. 2. Which company had more success collecting receivables? Complete this question by entering your answers in the tabs below. Required 1 Required 2...
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