The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.

Question 7.

1. Horizontally analyze the financial data.

2. Calculate how many days it took Sigmon Inc. to collect its receivables (i.e. Sigmon's average collection period) in 20Y3. Show your work. Label key numbers used in calculations. Explain your findings.

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 2013 $ 725,000 5,637,500 Accounts receivable, end of year Sales on account 2012 $ 650,000 4,687,500 20Y1 $600,000