Determine the receivables turnover ratio

Assignment Help Accounting Basics
Reference no: EM132234915

Question - The Second Cup is a Canadian specialty coffee retailer with over 350 cafes that serve the needs of thousands of guests daily. Its annual reports include the following details (in thousands of Canadian dollars):

Year

2015

2014

2013

2012

2011

2010

Net sales

$37,341

$28,172

$27,188

$26,346

$25,001

$25,171

Accounts receivable

5,168

5,115

5,031

4,839

5,449

5,917

Allowance for doubtful accounts

1,734

1,089

633

223

111

74

Required -

1. Determine the receivables turnover ratio and average collection period for 2011-2015, and comment on the results.

2. Explain the meaning of the numbers that you calculated in requirement (1).

3. Compute the ratio of allowance for doubtful accounts to accounts receivable for each of the six years, and comment on the results.

Reference no: EM132234915

Questions Cloud

What is the required rate of return : What is the required rate of return on this stock? That is, solve for r.
What is its current stock price : If the firm's required return (rs) is 14%, what is its current stock price (i.e. solve for Po)?
Required rate of return on bob stock : a. If the required rate of return on Bob stock is 13% then what is Bob Inc.'s stock price?
What would be the opportunity cost of capital : What would be the opportunity cost of capital for a property that is valued at $100,000 if it offers a return of $10,000 forever?
Determine the receivables turnover ratio : Determine the receivables turnover ratio and average collection period for 2011-2015, and comment on the results
Federal income tax withholding : Using the wage bracket withholding table in Exhibit 2 with $75 standard withholding allowance for each exemption, what is Avery's federal income tax withholding
How might network externalities affect firm size : Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms.
What is the effective annual discount rate : What is the Effective Annual discount Rate of the above bond?
The firm may bid up the share price : Which of the following statements best describes an advantage of share repurchases as an alternative to cash dividends?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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