The 2015 annual report of Ski Products, Inc. reported the following amounts in millions of dollars:
REQUIRED:
1. Compute Ski's accounts receivable turnover ratio for the year ended May 31, 2015. Assume that all sales are
on credit.
2. What is the average collection period in days for an account receivable? Explain your answer.
3. Ski's main products are medium to highend skis and snow boards. Give some examples of the types of customers you would expect Ski to have. Do you think the average collection period for sales to these customers is reasonable? What other information do you need to fully answer that question?

Question

The 2015 annual report of Ski Products, Inc. reported the following amounts in millions of dollars:
  REQUIRED:
1. Compute Ski's accounts receivable turnover ratio for the year ended May 31, 2015. Assume that all sales are
on credit.
2. What is the average collection period in days for an account receivable? Explain your answer.
3. Ski's main products are medium to high­end skis and snow boards. Give some examples of the types of customers you would expect Ski to have. Do you think the average collection period for sales to these customers is reasonable? What other information do you need to fully answer that question?

Quizplus · Accepted Answer

The Answer of The 2015 annual report of Ski Products, Inc. reported the following amounts in millions of dollars:
  REQUIRED:
1. Compute Ski's accounts receivable turnover ratio for the year ended May 31, 2015. Assume that all sales are
on credit.
2. What is the average collection period in days for an account receivable? Explain your answer.
3. Ski's main products are medium to high­end skis and snow boards. Give some examples of the types of customers you would expect Ski to have. Do you think the average collection period for sales to these customers is reasonable? What other information do you need to fully answer that question?

The 2015 Annual Report of Ski Products, Inc