Question
ShipIt Corporation reported the following rounded amounts (in millions): May 31 2013 2012 Accounts Receivable $ 5,215 $ 4,920 Allowance for Doubtful Accounts (195) (200)
| ShipIt Corporation reported the following rounded amounts (in millions): |
| May 31 | 2013 | 2012 | ||||
| Accounts Receivable | $ | 5,215 | $ | 4,920 | ||
| Allowance for Doubtful Accounts | (195) | (200) | ||||
| Accounts Receivable, Net of Allowance | $ | 5,020 | $ | 4,720 | ||
| Net Sales (assume all on credit) | $ | 44,000 | $ | 42,700 | ||
| Required: | |
| 1. | Determine the receivables turnover ratio and days to collect for 2013. (Use 365 days in a year. Do not round your intermediate calculations. Round your answers to 1 decimal place.) |
| 2. | Do the measures calculated in requirement 1 represent an improvement (or decline) in receivables turnover, compared to 2012 when the turnover was 7.5? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
13th Canadian Edition
1119740444, 9781119740445
