Please explain the days’ sales uncollected ratio and how is it used to assess liquidity.
Please explain the days’ sales uncollected ratio and how is it used to assess liquidity.
Homework Answers
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| The days’ sales uncollected ratio |
| The days’ sales uncollected ratio is a liquidity ratio. It is calculated by dividing net sales by average accounts receivables and then dividing that figure by 365 days. It means the time taken by company to recover from its accounts receivables or number of days in which customers clear their dues to the company. |
| How is it used to assess liquidity: |
| As stated above it is the time taken by company to recover from its accounts receivables. This ratio is used by creditors and investors to estimate in how many days before the company will collect from their customers. |
Add Answer to:
Please explain the days’ sales uncollected ratio and how is it
used to assess liquidity.
which of the following short term liquidity ratios measure how frequently a company collects its accounts? A- Days sales...
which of the following short term liquidity ratios measure how frequently a company collects its accounts? A- Days sales uncollected B- Days sales inventory C- Accounts receivable turnover D- Acid test ratio
(1) Compute days' sales uncollected. (Please don't just answer the questions. I'd like to know how...
(1) Compute days' sales uncollected. (Please
don't just answer the questions. I'd like to know
how this is solved, not just get the answers.)
Necessary Info:
Days' Sales Uncollected Choose Numerator: Choose Denominator: x DaysDays' Sales Uncollected Days' Sales Uncollected 2017 days days 2016: Simon Company's year-end balance sheets follow At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 29,205 34,138 35,204 56,400 53,000 3,912 207,084 $ 494,995 426,720 355,600 89,900...
QS 8-8 Days' sales uncollected LO A1 The following annual account balances are taken from Armour...
QS 8-8 Days' sales uncollected LO A1 The following annual account balances are taken from Armour Sports at December 31. Accounts receivable Net sales $ 11,958 $43,738 154,258 524,748 Complete the below table to calculate the number of days' sales uncollected for the years 2016 and 2017? (Round your "Days' Sales Uncollected" to 1 decimal place.) Days' Sales Uncollected Choose Numerator: Choose Denominator: Days Days Sales Unc Days' sales uncollected 2017 2016: days days Is the company's collection of receivables...
CHIC UTIV Help QS 8-10 Days' sales uncollected LO A1 10 The following annual account balances...
CHIC UTIV Help QS 8-10 Days' sales uncollected LO A1 10 The following annual account balances are from Armour Sports at December 31 points bonitor Accounts receivable Net Sales Year 2 $ 100,000 $ 85,000 2,500,000 2,000,000 Complete the below table to calculate the number of days' sales uncollected for the years Year 1 and Year 2 (Round your Uncollected" to 1 decimal place.) Print Choose Numerator: Days Sales Uncollected Choose Denominator: * Days References - Year 2 Days Sales...
A company's gearing ratio could be used to assess its Select one: a. Profitability b. Long-term...
A company's gearing ratio could be used to assess its Select one: a. Profitability b. Long-term solvency and stability c. Short-term liquidity d. Working capital efficiency
What does the liquidity of a company represent? Name a liquidity ratio and how it is...
What does the liquidity of a company represent? Name a liquidity ratio and how it is calculated
Financial ratio question - Interpretation 1 Current Ratio: How does the quick ratio differ from the...
Financial ratio question - Interpretation 1 Current Ratio: How does the quick ratio differ from the current ratio? Days in inventory [inventory age] : what is relationship between Inventory age [ inventory / ( Annual COGS/365)] and the “ Liquidity condition” Inventory Turnover [COGS/inventory]: given its relation to inventory age, why use COGS instead of Sales? Day In Receivables [average collection Period ] = A/Rs / (annual Credit Sales /365) Why only credit sales are included in calculating this ratio?...
the current ratio may be a misleading meaure of liquidity. true/false and explain
the current ratio may be a misleading meaure of liquidity. true/false and explain
Which of the following statements is correct concerning the days' sales in raw materials inventory ratio?...
Which of the following statements is correct concerning the days' sales in raw materials inventory ratio? Multiple Choice The ratio is not useful for a manufacturer Is calculated by taking the Raw materials used/Average raw materials inventory Reveals how many times a company turns over its raw materials inventory in a period, It measures how long it takes raw materials to be used in production Most companies generally prefer a higher number of days' soles in raw materials inventory
Please check on the following information from Mcdonalds and Wendy's Liquidity Current ratio Quick ratio Comments...
Please check on the following information from Mcdonalds and Wendy's Liquidity Current ratio Quick ratio Comments on liquidity Asset management Total Asset turnover Average collection period (ACP) Comments on asset management
(1) Compute days' sales uncollected. (Please
don't just answer the questions. I'd like to know
how this is solved, not just get the answers.)
Necessary Info:
Days' Sales Uncollected Choose Numerator: Choose Denominator: x DaysDays' Sales Uncollected Days' Sales Uncollected 2017 days days 2016: Simon Company's year-end balance sheets follow At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 29,205 34,138 35,204 56,400 53,000 3,912 207,084 $ 494,995 426,720 355,600 89,900...
QS 8-8 Days' sales uncollected LO A1 The following annual account balances are taken from Armour Sports at December 31. Accounts receivable Net sales $ 11,958 $43,738 154,258 524,748 Complete the below table to calculate the number of days' sales uncollected for the years 2016 and 2017? (Round your "Days' Sales Uncollected" to 1 decimal place.) Days' Sales Uncollected Choose Numerator: Choose Denominator: Days Days Sales Unc Days' sales uncollected 2017 2016: days days Is the company's collection of receivables...
CHIC UTIV Help QS 8-10 Days' sales uncollected LO A1 10 The following annual account balances are from Armour Sports at December 31 points bonitor Accounts receivable Net Sales Year 2 $ 100,000 $ 85,000 2,500,000 2,000,000 Complete the below table to calculate the number of days' sales uncollected for the years Year 1 and Year 2 (Round your Uncollected" to 1 decimal place.) Print Choose Numerator: Days Sales Uncollected Choose Denominator: * Days References - Year 2 Days Sales...
A company's gearing ratio could be used to assess its Select one: a. Profitability b. Long-term solvency and stability c. Short-term liquidity d. Working capital efficiency
Which of the following statements is correct concerning the days' sales in raw materials inventory ratio? Multiple Choice The ratio is not useful for a manufacturer Is calculated by taking the Raw materials used/Average raw materials inventory Reveals how many times a company turns over its raw materials inventory in a period, It measures how long it takes raw materials to be used in production Most companies generally prefer a higher number of days' soles in raw materials inventory
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