Geisel,Inc.reported net sales revenue of $600,000 in 2015 and $500,000 in 2016.The company's average net receivables were $120,000 during 2014 and $130,000 during 2015.At December 31,2016,the company had Accounts Receivable of $148,000 and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,000.The company reported Bad Debt Expense of $6,000 during 2015.
Required:
Part a.Determine the net receivables at December 31,2016.
Part b.Calculate the receivables turnover ratio for 2015 and 2016.(Round each calculation to one decimal place).
Part c.Calculate the days to collect for 2015 and 2016.(Round each calculation to one decimal place).
Part d.Interpret the results of this analysis.
Part e.Identify possible reasons for the changes in these two ratios from 2015 to 2016.

Question

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The Answer of Geisel,Inc.reported net sales revenue of $600,000 in 2015 and $500,000 in 2016.The company's average net receivables were $120,000 during 2014 and $130,000 during 2015.At December 31,2016,the company had Accounts Receivable of $148,000 and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,000.The company reported Bad Debt Expense of $6,000 during 2015.
Required:
Part a.Determine the net receivables at December 31,2016.
Part b.Calculate the receivables turnover ratio for 2015 and 2016.(Round each calculation to one decimal place).
Part c.Calculate the days to collect for 2015 and 2016.(Round each calculation to one decimal place).
Part d.Interpret the results of this analysis.
Part e.Identify possible reasons for the changes in these two ratios from 2015 to 2016.