Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC Company reported the following on their financial statements: 2020 2019 Sales Revenue $860,000 $750,000 Accounts Receivable $160,000 $150,000 *Note: 50% of all sales are
ABC Company reported the following on their financial statements: 2020 2019 Sales Revenue $860,000 $750,000 Accounts Receivable $160,000 $150,000 *Note: 50% of all sales are credit sales, A/R Turnover credit sales average accounts receivable Required: 1) Calculate the amount of the credit sales for 2019. Do not include Dollar Signs (S), Commas (), or decimals. Eg 100000 2) Determine the amount of the average accounts receivable for 2020. Do not include Dollar Signs (S), Commas (), or decimals. Eg 100000 3) What if? Assume that 85% of the 2020 sales are credit sales and average accounts receivable in 2020 is $140,000, what is the Accounts receivable turnover ROUNDED to TWO (2) decimal places for 2020? Eg. 2.77
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started