200 points Shiplt Corporation reported the following rounded

2.00 points Shiplt Corporation reported the following rounded amounts (in millions). S5,275 4,980 (225) 230) Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance S 5,050 $ 4,750 Net Sales (assume all on credit) 46,500 $ 45,200 Required: 1. Determine the receivables turnover ratio and days to collect for 2013, (Use 365 days in a year, Do not round your intermediate calculations. Round your answers to 1 decimal place.) Receivables Turnover Ratio tmes Days to Collect days 2. Do the measures calculated in requirement 1 represent an improvement (or decline) in recelvables turnover, compared to 2012 when the turnover was 8 0 Improvement Decline Hints Reterences eBook & Resources Type here to search oe??????

Solution

Requirement - 1

Receivables Turnover Ratio

9.5

Times

Days to Collect

38.4

Days

Receivables Turnover Ratio

= Net Sales / Average Accounts Receivables

= $46,500 / [(5,050 + 4,750) / 2]

= $46,500 / $4,900

= 9.5 Times

Days to Collect

= Number of days in a year / Receivables Turnover Ratio

= 365 Days / 9.5 Times

= 38.4 Days

Requirement - 2

The Correct Choice is “Improvement”

Receivables Turnover Ratio	9.5	Times
Days to Collect	38.4	Days