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Mathis and Hashey are two of the largest and most successful toymakers in the world, in terms of the products they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information reported in their annual reports (amounts in millions). Mathis Hashe Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 2815 2814 2813 $5,656 $5,131 $5,718 898 25 865 1,158 21 1,137 764 24 748 2815 2814 2813 $3,902 $3,768 $3,822 634 31 693 982 1,862 32 30 952 1,83e Requlrec: 1. Calculate the receivables turnover ratios and days to collect for Mathis and Hashey for 2015 and 2014. TIP: In your calculations, use average Accounts Receivable, Net of Allowance. (Use 365 days in a year. Do not round Intermediate calculations n Accounts Recelvable Turnover Ratlo. Round your finel answers to 1 declmel place. Use finel rounded answers from Accounts Recelvable Turnover Ratlo for Days to Collect ratlo calculatlon.) Mathis Hashey Mathis Hashey Receivables Turnover Ratio Days to Collect 2-a. Which of the companies was quicker to convert its receivables into cash in 2015? O Mathis O Hashey 2-b. Which of the companies was quicker to convert its receivables into cash in 2014? O Mathis O Hashey Requlred Informetlon The following information applies to the questions displayed below Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but switched at the end of the first quarter this year to the aging of accounts receivable method. The company entered into the following partial list of transactions. a. During January, the company provided services for $210,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c On February 4, the company collected $105,000 of accounts receivable. d On February 15, the company wrote off a $550 account receivable e. During February. the company provided services for $160,000 on credit. f On February 28, the company estimated bad debts using 1 percent of credit sales. g On March 1, the company loaned $12,000 to an employee, who signed a 8% note due in 3 months. h. On March 15, the company collected $550 on the account written off one month earlier. i On March 31, the company accrued interest earned on the note. j On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts had an unadjusted credit balance of $6,200. Number of Days Unpaid Total 2,188 2,180 Customen 8-3e 31-68 5 28e 61-98 Over 98 Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers 1,38e6e 3, 3 48,880 5,188 4,18e 2,180 Total Accounts Receivable Estimated uncollectible (%) $85,8e $33,800 $48,580 $5, 30e 6,28e 3% 16% 20% 48% 4. Sales Revenue and Service Revenue are two income statement accounts that relate to Accounts Receivable. Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on the income statement and indicate whether each would appear before, or after, Income from Operations. Execusmart Consultants would report: Income from Operations. Income from Operations. Requlred Informetlon [The following information applies to the questions displayed below. Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but switched at the end of the first quarter this year to the aging of accounts receivable method. The company entered into the following partial list of transactions. a. During January, the company provided services for $210,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c On February 4, the company collected $105.000 of accounts receivable. d On February 15, the company wrote off a $550 account receivable. e. During February. the company provided services for $160,000 on credit. f On February 28, the company estimated bad debts using 1 percent of credit sales. g On March 1, the company loaned $12,000 to an employee, who signed a 8% note due in 3 months. h. On March 15, the company collected $550 on the account written off one month earlier. i On March 31, the company accrued interest earned on the note. j On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts had an unadjusted credit balance of $6,200. Number of Days Unpaid Total 2,188 2,188 Customer 8-3e 31-68 5 28e 61-98 Over 98 Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers 1,38e6e 3 48,88e 2,180 79,58e 3, 5,188 4,18e Total Accounts Receivable Estimated uncollectible (%) $85,88e $33,ee $48,588 $5,38e 6,28e 3% 18% 28% 3. Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on March 31. ECUSMART CON SULTANTS Balance Sheet (Partial) At March 31 Assets Current Assets Accounts Receivable, Net of Allowance Required Information The following Information applies to the questions displayed below Execusmart Consutants has provided buslness consulting services for several years. The company has been using the percentage of credit sales method to estlmate bad debts but switched at the end of the first quarter this year to the aging of accounts recelvable method. The company entered Into the followlng partial list of transactions. a During January, the company provided services for $210,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. C. On February 4, the company collected $105,000 of accounts receivable. d. On February 15, the company wrote off a $550 account recelvable. e. During February, the company provided services for $160,000 on credit. f On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $12.000 to an employee, who signed a 8% note due in 3 months. h On March 15, the company collected $550 on the account written off one month earlier. On March 31, the company accrued Interest earned on the note. J On March 31, the company adjusted for uncollectible accounts, based on the following aging analysls, which Includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts had an unadjusted credit balance of $6,200. Nunber of D 31-68 Total 1,309 68 5 286e 2,189 79,580 Custoner 8-3e 61-99 Over 98 Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers 5 2,108 5,10 4,168 30,300 2,108 48,808 Total Accounts Receivable Estimated Uncollectible (%) $85,699 33,898 $49,589 $5,389 6,288 3% 28% 48% Required: 1. For tems (a)-, analyze the amount and directionor- of effects on specific financlal statement accounts and the overall accounting equation. TIP: In item UJ you must first calculate the deslred ending balance before adjusting the Allowance for Doubtful Accounts. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilties, or Stockholders Equity with a minus sign.) ssets