Barga Co. reported net sales for 2015 and 2016 of $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2015, $65,000; and December 31, 2016, $123,000. Calculate its days' sales uncollected at the end of each year. Round the number of days to one decimal. Evaluate and comment on any changes in the amount of liquid assets tied up in receivables.
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Thursday, 18 January 2018
Barga Co. reported net sales for 2015 and 2016 of $730,000 and $1,095,000, respectively
Barga Co. reported net sales for 2015 and 2016 of $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2015, $65,000; and December 31, 2016, $123,000. Calculate its days' sales uncollected at the end of each year. Round the number of days to one decimal. Evaluate and comment on any changes in the amount of liquid assets tied up in receivables.
