Average collection period
Not what you're looking for?
The Robinson Company has the following current assets and
current liabilities for these two years:
2010 2011
Cash and marketable securities $ 50,000 $ 50,000
Accounts receivable 300,000 350,000
Inventories 350,000 500,000
Total current assets $700,000 $900,000
Accounts payable $200,000 $250,000
Bank loan 0 150,000
Accruals 150,000 200,000
Total current liabilities $350,000 $600The Robinson Company from Problem 2 had net sales of
$1,200,000 in 2010 and $1,300,000 in 2011.
a. Determine the receivables turnover in each year.
b. Calculate the average collection period for each year.
c. Based on the receivables turnover for 2010, estimate the
investment in receivables if net sales were $1,300,000 in 2011.
d. How much of a change in the 2011 receivables occurred?,000
Purchase this Solution
Solution Summary
Solution helps in estimating average collection period
Solution Preview
The Robinson Company has the following current assets and
current liabilities for these two years:
2010 2011
Cash and marketable securities $ 50,000 $ 50,000
Accounts receivable 300,000 350,000 ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Motivation
This tests some key elements of major motivation theories.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.