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Mr. Williams, the owner of Williams Produce, wants to maintain control over accounts recei

Mr. Williams, the owner of Williams Produce, wants to maintain control over accounts receivable. He understands that days’ sales in receivables and accounts receivable turnover will give a good indication of how well receivables are being managed. Williams Produce does 60% of its business during June, July, and August. Mr. Williams provided the following pertinent data:

 

Require:

a. Compute the days’ sales in receivable for July 31, 2011, and December 31, 2011, based on the accompanying data

b. Compute the accounts receivable turnover for the period ended July 31, 2011, and December 31, 2011. (Use year-end gross receivables)

c. Comment on the results from (a) and (b).

Dec 06 2019 View more View Less

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