Class+Exercise+from+2-18-09+_2_

Class+Exercise+from+2-18-09+_2_ - (2) With the information...

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ACCT 2101 CLASS EXERCISE DATE _____________ Topic: Accounts Receivable Ratios Name _____________________________ Section _______ Using the Microsoft Income Statement and Balance Sheet: (1) Compute the (a) Accounts Receivable Turnover and the (b) Days to Collect Accounts Receivable Ratios for both 2007 and 2008. (Additional information: Microsoft’s Accounts Receivable balance at the end of 2006 was $9,316.)
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Unformatted text preview: (2) With the information you now have, what are your conclusions about the companys accounts receivable? (a) Accounts Receivable Turnover = Credit Sales / Average Accounts Receivable 2007: 2008: (b) Days to Collect Accounts Receivable = 365 days / Accounts Receivable Turnover 2007: 2008:...
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