Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Robinsons Company has a net sales of $1,200,000 in 2010 and $1,300,000 in 2011. 2010 2011 Cash and marketable securities $50,000 $50,000 Accounts Receivable
The Robinsons Company has a net sales of $1,200,000 in 2010 and $1,300,000 in 2011. 2010 2011 Cash and marketable securities $50,000 $50,000 Accounts Receivable 300,000 350,000 Inventories 350,000 500,000 Total current assets $700,000 $900,000 Accounts payable $200,000 $250,000 Bank loan 0 150,000 Accruals 150,000 200,000 Total current liabilities $350,000 $600,000 a. Determine the receivable turnover for each year. b. Calculate the average collection period for each year. c. Based on the receivables turnover for 2010, estimate the investment in receivables if net sales were $1,300,000 in 2011. d. How much change in the 2011 receivables occurred
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