Question
Sandhill Company's general ledger included the following selected accounts (in thousands) at December 31, 2021: Accounts payable $1,051.1 Accounts receivable 552.2 Accumulated depreciation-equipment 842.1 Allowance
Sandhill Company's general ledger included the following selected accounts (in thousands) at December 31, 2021: Accounts payable $1,051.1 Accounts receivable 552.2 Accumulated depreciation-equipment 842.1 Allowance for doubtful accounts 36.9 Bad debt expense 92.5 Cash 388.8 Cost of goods sold 656.6 Estimated inventory returns 3.2 Equipment 1,702.2 Interest revenue 19.1 Merchandise inventory 642.9 Notes receivable-due in 2022 88.3 Notes receivable-due in 2025 199.3 Prepaid expenses 18.3 Refund liability 22.5 Sales 4,586.9 Sales discounts 29.8 Short-term investments 192.7 Supplies 20.8 Unearned revenue 57.6 Additional information: TUTUTIONE RIVETTIGLIVE On December 31, 2020, Accounts Receivable was $619.8 thousand and the Allowance for Doubtful Accounts was $36.6 thousand. The receivables turnover was 8.3 the previous year. Prepare the assets section of the balance sheet. (List Current Assets in order of liquidity. Enter amounts in thousands. Round answers to 1 decimal place, e.g. 52.7.) SANDHILL COMPANY Balance Sheet (Partial) December 31, 2021 (in thousands) Assets Current Assets Cash Short-Term Investments Notes Receivable Accounts Receivable Less : Allowance for Doubtful Accounts Merchandise Inventory 552.2 36.9 Equipment Less: Accumulated Depreciation - Equipment Total Assets 1702.2 842.1 eTextbook and Media List of Accounts $ Calculate the receivables turnover and average collection period. Compare these results with the previous year's results and comment on any trends. (Use 365 days for calculation. Round answers to 1 decimal place, eg. 15.1) Receivables turnover Average collection period Sandhillr's receivables turnover ratio was 2021 times days in 2021. 2020 times days
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