Question
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 2013 2012
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 2013 2012 2011 Accounts receivable, end of year $725,000 $650,000 $600,000 Sales on account 5,637,500 4,687,500 a. For 2012 and 2013, determine (1) the accounts receivable turnover and (2) the number of days" sales in receivables. Round interim calculations to the nearest dollar and final answers t place. Assume a 365-day year. 2013 2012 1. Accounts receivable turnover 2. Number of days' sales in receivables days days b. The collection of accounts receivable has improved This can be seen in both the increase in accounts receivable turnover and the decrease in the collection period. Cinna
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