Potential reasons for such a significant decline

Assignment Help Accounting Basics

Reference no: EM13142858

"Mark's Wine and Spirits is the wholesale supplier of wine and liquor to local package stores. Most of Mark's sales are on credit with terms of 1/10, n/45. The accounts receivable turnover ratio has declined from 11.3 in 2003 to 8.3 in 2004. Mark is concerned about the decline and is unsure of what steps he should take to improve the ratio.

1. List three potential reasons for such a significant decline.

2. What are three things Mark should consider doing to improve the ratio?

3. How is the accounts receivable turnover ratio used and what does it measure?"

Reference no: EM13142858

Questions Cloud

What mass of silver was in the orginal solution : A solution contains an unknown mass of dissolved silver ions. when potassium chloride is add to the solution.,a white precipitate forms.

Computation of the percentage-of-completion : An error was made in the computation of the percentage-of-completion of the current year's ending work-in-process inventory. The error resulted in assigning a higher percentage-of-completion to each component of the inventory than actually was the..

Describe the major characteristics : Describe the major characteristics of your preferred learning style? List at least three study strategies and techniques you have or will use during this course to increase your effectiveness?

Describe the basic steps of a pulse-chase experiment : Pulse-chase experiments were vital for showing that RNA acts as an information-transfer intermediary between DNA and protein. Describe the basic steps of a pulse-chase experiment and explain in your own words how the results suggested that RNA is ..

Potential reasons for such a significant decline : List three potential reasons for such a significant decline. What are three things Mark should consider doing to improve the ratio? How is the accounts receivable turnover ratio used and what does it measure?"

Is honesty always the best policy-free-writing : Please write a paragraph about "Is honesty always the best policy". Write 10 sentences, remember is free-writing.

Draw en edgeworth box : Draw en Edgeworth box and illustrate. Initial endowement allocation, an indifferens curve for each consumer and the contract curve.

Additional paid-in capital amounted : Berry Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2010, the first year of the corporation's existence:

What are the therapeutic advantages and disadvantages : What are the therapeutic advantages and disadvantages of using a drug that affects a broad range of molecular targets?

User Account

All Pages