A company reported net sales for 2016 of $265,000 and $545,000 for 2017. The year-end balances of accounts receivable were $39,000 for 2016 and $92,000 for 2017. Calculate the days' sales uncollected at the end of each year for this company and describe any changes in the apparent liquidity of the company's receivables.

Question

Quizplus · Accepted Answer

The Answer of A company reported net sales for 2016 of $265,000 and $545,000 for 2017. The year-end balances of accounts receivable were $39,000 for 2016 and $92,000 for 2017. Calculate the days' sales uncollected at the end of each year for this company and describe any changes in the apparent liquidity of the company's receivables.

A Company Reported Net Sales for 2016 of $265,000 and $545,000