Accounts receivable analysis

Assignment Help Financial Accounting

Reference no: EM13953181

Accounts Receivable Analysis

The following account balances are taken from the records of the Faraway Travel Agency:

December 31

	2014	2013	2012
Accounts receivable	$150,000	$100,000	$80,000
	2014	2013

Net credit sales $600,000 $540,000

Faraway extends credit terms requiring full payment in 60 days, with no discount for early payment.

Required

1. Compute Faraway's accounts receivable turnover ratio for 2014 and 2013.

2. Compute the number of days' sales in receivables for 2014 and 2013. Assume 360 days in a year.

3. Comment on the efficiency of Faraway's collection efforts over the two-year period.

Reference no: EM13953181

Questions Cloud

Selling expenses and general-administrative expenses : Selling Expenses and General and Administrative Expenses Operating expenses are subdivided between selling expenses and general and administrative expenses when a multiple-step income statement is prepared. Identify each of the following items as ..

Find the value of a bond maturing in four years : Find the value of a bond maturing in 4 years, with a $100 par value and a coupon interest rate of 6% (paid semi-annually). The required return of similar risk bonds is 14% (paid semi-annually).

Validate an idea with your own experience. : Respond by postings in one or more of the following ways: Ask a probing question. Share an insight from having read your colleague's posting. Offer and support an opinion. Validate an idea with your own experience

Calculate variance of return for the investment : Two assets are available for investment.

Accounts receivable analysis : The following account balances are taken from the records of the Faraway Travel Agency:

Display these rates by means of a bar chart : A long-term follow-up study of diabetes has been conducted among Pima Indian residents of the Gila River Indian Community of Arizona since 1965. Subjects of this study at least 5 years old and of at least half Pima ancestry were examined approxima..

Response - ethical benefits and limitations : Ethical benefits and limitations - Nonprofits are often charged with operating at a higher standard than for profit organizations. Theoretically the goal for nonprofits is to provide better or more service to the community, rather than to obtain a..

Compute the equilibrium income : Compute the equilibrium income, derive any government expenditure multiplier and interpret the multiplier and explain its significance in policy context

Perform a complete residual analysis. : An experiment was carried out to assess the impact of the variables x1 = force(gm), X2 = power (mW), x3 = temperature (C) and x4 = time (msec) on y = ball bond shear strength (gm). The results are given in the problem 5 Excel data file.

User Account

All Pages