2.00 points Shiplt Corporation reported the following rounded amounts (in millio
ID: 2395381 • Letter: 2
Question
2.00 points Shiplt Corporation reported the following rounded amounts (in millions). S5,275 4,980 (225) 230) Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance S 5,050 $ 4,750 Net Sales (assume all on credit) 46,500 $ 45,200 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.) Receivables Turnover Ratio tmes Days to Collect days 2. Do the measures calculated in requirement 1 represent an improvement (or decline) in recelvables turnover, compared to 2012 when the turnover was 8 0 Improvement Decline Hints Reterences eBook & Resources Type here to search oe??????Explanation / Answer
Requirement - 1
Receivables Turnover Ratio
9.5
Times
Days to Collect
38.4
Days
Receivables Turnover Ratio
= Net Sales / Average Accounts Receivables
= $46,500 / [(5,050 + 4,750) / 2]
= $46,500 / $4,900
= 9.5 Times
Days to Collect
= Number of days in a year / Receivables Turnover Ratio
= 365 Days / 9.5 Times
= 38.4 Days
Requirement - 2
The Correct Choice is “Improvement”
Receivables Turnover Ratio
9.5
Times
Days to Collect
38.4
Days
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