Accounts Receivable AnalysisThe following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.20Y320Υ220Υ1Accounts receivable, end of year$127,800$135,000$142,400Sales on account775,260748,980a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a365-day year.20Y320Υ21. Accounts receivable turnover2. Number of days' sales in receivablesdaysdaysb. The collection of accounts receivable has improved• v. This can be seen in both the increaseV in accounts receivable turnover and thedecreaseV in the collection period.

Accounts receivable turnover ratio = Net credit salesAverage accounts receivable Number of days…

Answered: The following data are taken from the…

The following data are taken from the financial statements of Sigmon Inc. Te 20Y3 20Y2 20Y Accounts receivable, end of year $127,800 $135,000 $142, Sales account 775 26O 748 980

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9E

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Accounts Receivable Analysis
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.
20Y3
20Υ2
20Υ1
Accounts receivable, end of year
$127,800
$135,000
$142,400
Sales on account
775,260
748,980
a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a
365-day year.
20Y3
20Υ2
1. Accounts receivable turnover
2. Number of days' sales in receivables
days
days
b. The collection of accounts receivable has improved
• v. This can be seen in both the increase
V in accounts receivable turnover and the
decrease
V in the collection period.

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