16 & 17

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 20Y2 20Y1 Accounts receivable, end of year $120,200 $128,000 $134,800 Sales on account 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. 732,190 696,420 20Y3 20Y2 1. Accounts receivable turnover 5.44X 2. Number of days' sales in 60 X days 67 X days receivables b. The collection of accounts receivable has improved . This can be seen in both the increase receivable turnover and the decrease in the collection period in accounts Feedback