Question Details

What conclusion can an analyst draw about the management of the accounts receivable 



Ex. 1
Selected data from O'Brien Company are presented below:
Total assets $1,600,000
Average assets 1,750,000
Net income 245,000
Net sales 1,225,000
Average common stockholders' equity 1,000,000
Net cash provided by operating activities 294,000
Instructions
Calculate the profitability ratios that can be computed from the above information.
Ex. 2
The following data are taken from the financial statements of Duncan Company:
2003 2002
Monthly average accounts receivable $ 520,000 $ 500,000
Net sales on account 5,200,000 4,500,000
Terms for all sales are 2/10, n/30
Instructions
(a) Compute the accounts receivable turnover and the average collection period for both years.
(b) What conclusion can an analyst draw about the management of the accounts receivable?




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help