Please help with B

Please help with question 2

Accounts Receivable Analysis Sigmon Inc. Terms of all sales are 2/10, n/45 The following data are taken from the financial statements 203 202 201 Accounts receivable, end of year $600,000 $725,000 $650,000 Sales on account 5,637,500 4,687,500 a. For 20Y2 and 20Y3, 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 to one decimal place. Assume a 365-day year 20Y3 20Y2 7.50 8.20 1. Accounts receivable turnover 57.9X days 52.9 X days 2. Number of days' sales in receivables b. The collection of accounts receivable has improved in accounts receivable turnover and the decrease in the This can be seen in both the increase collection period. QT, Inc. and Elppa Computers, Inc. compete with each other in the personal computer market. QT assembles computers to customer orders, building and delivering a computer within four days of a customer entering an order online. Elppa, on the other hand, builds computers for inventory prior to receiving an order. These computers are sold from inventory once an order is received. Selected financial information for both companies from recent financial statements follows (in millions) QT Elppa Sales $56,940 $120,357 Cost of goods sold 44,754 92,385 Inventory, beginning of period 1,382 6,317 Inventory, end of period 7,490 1,404 a. Determine for both companies (1) the inventory turnover and (2) the number of days' sales in inventory. Round your calculations and answers to one decimal place. Assume 365 days a year Elppa 13.4V 32.1 1. Inventory turnover X days 2. Number of days' sales in inventory 11.4 27.1 days b. QT has a much higher inventory turnover ratio than does Elppa. Likewise, QT has a much smaller number of days' sales in inventory. These significant differences are a result of QT's make-to-order strategy