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how can i get the average Receivable? WorldBiz operates divisions around the world. Its European division-EuroBiz (EB)-has recently reported the following information to you at

image text in transcribedimage text in transcribedhow can i get the average Receivable?

WorldBiz operates divisions around the world. Its European division-EuroBiz (EB)-has recently reported the following information to you at WorldBiz's head office. You are trying to decide whether to direct your internal audit staff to investigate more closely. From the Financial Statement Notes Accounts Receivable (gross) Allowance for Doubtful Accounts Accounts Receivable, Net Year 5 $ 102,000 (5,100) 96, 900 Year 4 $ 62,000 (6,200) 55,800 Year 3 $ 42,000 (4,200) 37,800 Other Information Gathered Net Sales Revenue Accounts Receivable Write-offs Bad Debt Expense Sales Discounts (3/10, n/30) Year 5 $ 620,000 7,100 12,400 3,200 Year 4 $ 570,000 6,300 14,250 9, 200 Year 3 $ 510,000 6,300 12,750 5,200 Required: 1-a. For each of the years, calculate the proportion of gross accounts receivable estimated to be uncollectible as allowed for in the Allowance for Doubtful Accounts. 1-b. Which year does not align with the other two? 2-a. For each of the years, calculate the proportion of Net Sales Revenue that Bad Debt Expense represents. 2-b. Which year does not align with the other two? 3-a. Did customers take greater (or lesser) advantage of sales discounts in Year 5 than in Year 4 and Year 3? 3-b. Does this indicate customers were more or less) likely to promptly pay their balances in Year 5 as compared to prior years? 4-a. Calculate the average days to collect in Year 5 and Year 4. 4-b. Does this measure indicate customers paid their balances faster (or slower) in Year 5 as compared to Year 4? 5. Indicate (yes or no) whether you should direct your internal audit staff to investigate EB's receivables management practices more closely. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req Req 3B Req 4A Req 4B Req 5 Calculate the average days to collect in Year 5 and Year 4. (Use 365 days in a year. Round your intermediate calculations to 1 decimal place.) Year 5 Year 4 Average days to collect 60.0 days days

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