Matrix Corp.reported the following figures from its financial statements for the years 2018 through 2020.
A.Calculate for 2020:
1.Accounts receivable turnover
2.Average collection period
B.Calculate for 2019:
1.Accounts receivable turnover
2.Average collection period
C.Interpret the receivables turnover and the average collection period,in general.Comment on the change in the ratio results from 2019 to 2020.Then discuss how the trend in sales from 2018 to 2019 and 2020 may have affected the change in the ratios from 2019 to 2020.

Question

Matrix Corp.reported the following figures from its financial statements for the years 2018 through 2020.
  A.Calculate for 2020:
1.Accounts receivable turnover
2.Average collection period
B.Calculate for 2019:
1.Accounts receivable turnover
2.Average collection period
C.Interpret the receivables turnover and the average collection period,in general.Comment on the change in the ratio results from 2019 to 2020.Then discuss how the trend in sales from 2018 to 2019 and 2020 may have affected the change in the ratios from 2019 to 2020.

Quizplus · Accepted Answer

The Answer of Matrix Corp.reported the following figures from its financial statements for the years 2018 through 2020.
  A.Calculate for 2020:
1.Accounts receivable turnover
2.Average collection period
B.Calculate for 2019:
1.Accounts receivable turnover
2.Average collection period
C.Interpret the receivables turnover and the average collection period,in general.Comment on the change in the ratio results from 2019 to 2020.Then discuss how the trend in sales from 2018 to 2019 and 2020 may have affected the change in the ratios from 2019 to 2020.