Acc280 Financial Accounting: BE15-11 following data are taken from the financial statements (Morino)

Acc280 Financial Accounting
BE15-11
The following data are taken from the financial statements of Morino Company.
                                                2009 2008
Accounts receivable (net), end of year        $ 550,000 520,000
Net sales on account                            3,960,000 3,100,000
Terms for all sales are 1/10, n/60.

Instructions:
(a) Compute for each year (1) the receivables turnover and (2) the average collection period. At the end of 2007, accounts receivable (net) was $480,000.
(b) What conclusions about the management of accounts receivable can be drawn from these data?
Powered by