The 2017 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 31,2017.(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 high-end 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?
$\begin{array}{llr}
\text { Net sales, for the year ended May 31,2017 } &\$15,111.2\
\text { Receivables, May 31, 2017 } &989.4\
\text {Receivables, May 31, 2016 } &1,011.6
\end{array}$

Question

The 2017 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 31,2017.(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 high-end 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?
 $\begin{array}{llr}
  \text { Net sales, for the year ended May 31,2017 } &\$15,111.2\
 \text { Receivables, May 31, 2017 } &989.4\
 \text {Receivables, May 31, 2016  } &1,011.6
\end{array}$

Quizplus · Accepted Answer

The Answer of The 2017 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 31,2017.(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 high-end 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?
 $\begin{array}{llr}
  \text { Net sales, for the year ended May 31,2017 } &\$15,111.2\
 \text { Receivables, May 31, 2017 } &989.4\
 \text {Receivables, May 31, 2016  } &1,011.6
\end{array}$

The 2017 Annual Report of Ski Products,Inc