Accounts Receivable Turnover For the Year 2 and Year 1, Classic Company reported the following: Year 2 Sales $3,760,960 Accounts receivable 412,450 Assume that the accounts receivable were $346,750 at the beginning of Year 1. Year 1 $3,684,310 405,150 Rosco Co. reported the following: Year 2 Year 1 Sales $1,681,920 $1,741,050 Accounts receivable 171,550 178,850 Assume that accounts receivable were $208,050 at the beginning of Year 1, Accounts receivable turnover ratios Year 2 Year 1 Classic Company 9.2 9.8 Rosco Co. 9.6 9 a. Compute the average accounts receivable turnover ratio for Classic Company and Rosco Co. for Year 2 and Year 1. Round to one decimal place. Classic Company: Rosco Co. b. Does Classic Company or Rosco Co. have the higher average accounts receivable turnover ratio? has the higher average accounts receivable turnover ratio. Year 2 Year 1 Sales $1,681,920 $1,701,050 Accounts receivable 171.550 178,850 Assume that accounts receivable were $208,050 at the beginning of Year 1 Accounts receivable turnover ratios Year 2 Year 1 Classic Company 9.2 9.8 Rosco Co. 9.6 9 a. Compute the average accounts receivable turnover ratio for Classic Company and Rosco Co. for Year 2 nd Year 1. Round to one decimal place Classic Company Rosco Co b. Does Classic Company or Rosco Co have theher verge accounts receivable amover ratio has the higher average accounts recevable to ratio c. Explain why the werage tumover ratios are differenti (b). Classic Company operates a specialty retail chain of stores that sells directly to dividual consumers. Many of these consumers (retail customers) paying MasterCard or VISA, which is recorded as cash sales. In contrast, Rocctures foods that are sold to food wholesalers, grocery store chains, and other food distributors that eventually sell Rosco's products to individual consumers. Accordingly, Hecause of the extended distribution chan we would expect Rosco to have accounts receivable than Classic In addition, we would expect Rosco's business Customers to take period to pay the recevables. Thus, we would expect Rosco's average accounts receivable turnover ratio to be than Classic Check My Work more Check My Work serem Accounts Receivable Turnover For the Year 2 and Year 1, Classic Company reported the following: Year 2 Year 1 Sales $3,684,310 Accounts receivable $3,760,960 412,450 405,150 Assume that the accounts receivable were $346,750 at the beginning of Year 1 Rosco Co. reported the following: Year 2 Year 1 $1,741,050 178,850 Sales $1,681,920 Accounts receivable 171,550 Assume that accounts receivable were $208,050 at the beginning of Year 1. Accounts receivable turnover ratios Year 2 Year 1 Classic Company 9.2 9.8 Rosco Co. 9.6 9 a. Compute the average accounts receivable turnover ratio for Classic Company and Rosco Co. for Year 2 and Year 1. Round to one decimal place, Classic Company Rosco Co.: b. Does Classic Company or Rosco Co. have the higher average accounts receivable turnover ratio? has the higher average accounts receivable turnover ratio. Rosco Co. reported the following Year $1,741,050 178,850 Year 2 Sales $1,681,920 Accounts receivable 171,550 Assume that accounts receivable were $208,050 at the beginning of Yeart Accounts receivable turnover ratios Year 2 Year 1 Classic Company 9.2 9.8 Rosco Co. 9.6 9 a. Compute the average accounts receivable turnover ratio for Classic Company and Rosca Co. for Year 2 nd Year 1. Found to one decimal place Classic Company Rosca Co. b. Does Classic Company or Rosco Co have the higher average accounts receivable tumover tio! has the higher average accounts receivable turnover ratio c. Explain why the average turnover ratios are different in (b). Classic Company operates a specialty retail chain of stores that sells directly to individual consumers. Many of these consumers (retail customers) pay using MasterCard or VISA, which is recorded as cash sales. In contrast, Rosco manufactures foods that are sold to food wholesalers, grocery store chains, and other food distributors that eventually sell Rosco's products to individual consumers. Accordingly, because of the extended distribution chain, we would expect Rosco to have accounts receivable than Classic. In addition, we would expect Rosco's business customers to take period to pay their receivables. Thus, we would expect Rosco's average accounts receivable turnover ratio to be than Classic Check My Work 3 more Check My Work uses remaining