Smith's accounts receivable financial data (in millions) for three years are listed below:
Required:
a. Calculate the net realizable value of receivables that will be reported on Smith's balance sheet for each year.
b. Determine the accounts receivable turnover for 2019 and 2018.
c. Compare the accounts receivable turnovers for 2019 and 2018 and comment on the differences.

Question

Smith's accounts receivable financial data (in millions) for three years are listed below: 
  Required:
a. Calculate the net realizable value of receivables that will be reported on Smith's balance sheet for each year.
b. Determine the accounts receivable turnover for 2019 and 2018.
c. Compare the accounts receivable turnovers for 2019 and 2018 and comment on the differences.

Quizplus · Accepted Answer

The Answer of Smith's accounts receivable financial data (in millions) for three years are listed below: 
  Required:
a. Calculate the net realizable value of receivables that will be reported on Smith's balance sheet for each year.
b. Determine the accounts receivable turnover for 2019 and 2018.
c. Compare the accounts receivable turnovers for 2019 and 2018 and comment on the differences.

Smith's Accounts Receivable Financial Data (In Millions) for Three Years