Question
E8-16 (Algo) Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect [LO 8-4] Express Companies reported the following rounded amounts (in millions): 2019 2018
E8-16 (Algo) Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect [LO 8-4]
Express Companies reported the following rounded amounts (in millions):
| 2019 | 2018 | |
|---|---|---|
| Accounts Receivable | $ 5,375 | $ 5,080 |
| Allowance for Doubtful Accounts | (275) | (280) |
| Accounts Receivable, Net of Allowance | $ 5,100 | $ 4,800 |
| Net Sales (assume all on credit) | $ 38,500 | $ 37,000 |
Required:
Determine the receivables turnover ratio and days to collect for 2019.
Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2018, when the turnover was 9.1?
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Gleim CIA Review Part 3 Internal Audit Knowledge Elements
Authors: Irvin N. Gleim
2018 Edition
1618541153, 978-1618541154
