Accounts receivable analysis

Assignment Help Financial Accounting
Reference no: EM13953181

Accounts Receivable Analysis

The following account balances are taken from the records of the Faraway Travel Agency:

December 31

2014

2013

2012

Accounts receivable

$150,000

$100,000

$80,000

 

2014

2013

 

Net credit sales                                 $600,000         $540,000

Faraway extends credit terms requiring full payment in 60 days, with no discount for early payment.

Required

1. Compute Faraway's accounts receivable turnover ratio for 2014 and 2013.

2. Compute the number of days' sales in receivables for 2014 and 2013. Assume 360 days in a year.

3. Comment on the efficiency of Faraway's collection efforts over the two-year period.

Reference no: EM13953181

Questions Cloud

Selling expenses and general-administrative expenses : Selling Expenses and General and Administrative Expenses Operating expenses are subdivided between selling expenses and general and administrative expenses when a multiple-step income statement is prepared. Identify each of the following items as ..
Find the value of a bond maturing in four years : Find the value of a bond maturing in 4 years, with a $100 par value and a coupon interest rate of 6% (paid semi-annually). The required return of similar risk bonds is 14% (paid semi-annually).
Validate an idea with your own experience. : Respond by postings in one or more of the following ways: Ask a probing question. Share an insight from having read your colleague's posting. Offer and support an opinion. Validate an idea with your own experience
Calculate variance of return for the investment : Two assets are available for investment.
Accounts receivable analysis : The following account balances are taken from the records of the Faraway Travel Agency:
Display these rates by means of a bar chart : A long-term follow-up study of diabetes has been conducted among Pima Indian residents of the Gila River Indian Community of Arizona since 1965. Subjects of this study at least 5 years old and of at least half Pima ancestry were examined approxima..
Response - ethical benefits and limitations : Ethical benefits and limitations - Nonprofits are often charged with operating at a higher standard than for profit organizations. Theoretically the goal for nonprofits is to provide better or more service to the community, rather than to obtain a..
Compute the equilibrium income : Compute the equilibrium income, derive any government expenditure multiplier and interpret the multiplier and explain its significance in policy context
Perform a complete residual analysis. : An experiment was carried out to assess the impact of the variables x1 = force(gm), X2 = power (mW), x3 = temperature (C) and x4 = time (msec) on y = ball bond shear strength (gm). The results are given in the problem 5 Excel data file.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Money spent on benefits directly as cash wages

You are the benefits manager at a medium-sized corporation and the president of the company has requested your advice. She overheard an employee saying that the employer spends too much money on benefits that aren’t really needed and that giving empl..

  Complete the subsequent tax return''s and schedule

Complete the subsequent tax return's and Schedule

  Illustrate what are the qualitative costs

Identify the differential, avoidable or relevant costs associated with the sourcing location for a call center for Bank of America? Illustrate what are the qualitative costs? Which ones are more important?

  Determine the current assets

Based on the following information, determine the current assets, assuming all accounts have a normal balance?

  Prepare the journal entry to record the write-off of default

The Rock has credit sales of $650,000 during 2010 and estimates at end of 2010 that 3 percent of these credit sales will eventually default. Prepare the journal entry to record the write-off of the defaulted $1,225 balance.

  Calculate the equivalent units for materials

Calculate the equivalent units for materials (using the weighted-average method) for the month in the first processing department.

  Create a value chain for timber and timber products industry

Create a value chain for the timber and timber products industry, beginning with the growing of timber and ending with the retailing of timber and paper products.

  Shares of common stock outstanding throughout

The following are partial income statement account balances taken from the December 31, 2016, year-end trial balance of White and Sons, Inc.: restructuring costs, $300,000; interest revenue, $40,000; before-tax loss on discontinued operations, $400,0..

  In a qualifying like-kind exchange

In a qualifying like-kind exchange, Billy exchanges land worth $100,000 with a tax basis of $60,000 and receives a building from Bobby worth $100,000 who has an adjusted tax basis of $40,000. What is Billy’s basis in the building he receives in the e..

  On december 8 2000 general mills announced to acquire the

on december 8. 2000 general mills announced to acquire the worldwide business of pillsbury from diageo plc. general

  Investing activities

Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $29,500; net cash used in investing activities was $10,600 and net cash used in financing activities was $12,900.

  Using the actual method-expense deduction

Derrick uses his personal car for work as an employee. In 2014, Derrick drove 6,000 business miles and 30,000 total miles. His car-related expenses include $3,600 for gas; $600 for insurance; $100 for license and registration fees; $2,900 for depreci..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd