Determine the number of days sales in receivables for 2016


Question - Financial statement data for years ending December 31 for Robid Company follows:

2016 2015

Sales $7,906,000 $6,726,000

Account receivable:

Beginning of year 600,000 540,000

End of year 580,000 600,000

a. Determine the accounts receivable turnover for 2016 and 2015.

b. Determine the number of days' sales in receivables for 2016 and 2015. Use 365 days in a year in your computations. Round interim calculations and your final answers to one decimal place.

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Accounting Basics: Determine the number of days sales in receivables for 2016
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