Question
E8-16 (Algo) Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect [LO 8-4] P&E Shipping 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]
P&E Shipping reported the following rounded amounts (in millions):
| 2019 | 2018 | |
|---|---|---|
| Accounts Receivable | $ 5,475 | $ 5,180 |
| Allowance for Doubtful Accounts | (325) | (330) |
| Accounts Receivable, Net of Allowance | $ 5,150 | $ 4,850 |
| Net Sales (assume all on credit) | $ 41,500 | $ 40,000 |
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 9.6?
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Pocket CIO The Guide To Successful IT Asset Management Get To Grips With The Fundamentals Of IT Asset Management Software Asset Management And Software License Compliance Audits With This Guide
Authors: Phara Estime McLachlan
1st Edition
1783001003, 978-1783001002
