Matrix Corp. reported the following figures from its financial statements for the years 2015 through 2017. Required:
A.Calculate for 2017:
1.Accounts receivable turnover
2.Average collection period
B.Calculate for 2016:
1.Accounts receivable turnover
2.Average collection period
C.Interpret the receivables turnover and the average collection period, in general.Comment on the change in the ratio results from 2016 to 2017.Then discuss how the trend in sales from 2015 to 2016 and 2017 may have affected the change in the ratios from 2016 to 2017.

Question

Matrix Corp. reported the following figures from its financial statements for the years 2015 through 2017.  Required: 
A.Calculate for 2017:
1.Accounts receivable turnover
2.Average collection period
B.Calculate for 2016:
1.Accounts receivable turnover
2.Average collection period
C.Interpret the receivables turnover and the average collection period, in general.Comment on the change in the ratio results from 2016 to 2017.Then discuss how the trend in sales from 2015 to 2016 and 2017 may have affected the change in the ratios from 2016 to 2017.

Quizplus · Accepted Answer

The Answer of Matrix Corp. reported the following figures from its financial statements for the years 2015 through 2017.  Required: 
A.Calculate for 2017:
1.Accounts receivable turnover
2.Average collection period
B.Calculate for 2016:
1.Accounts receivable turnover
2.Average collection period
C.Interpret the receivables turnover and the average collection period, in general.Comment on the change in the ratio results from 2016 to 2017.Then discuss how the trend in sales from 2015 to 2016 and 2017 may have affected the change in the ratios from 2016 to 2017.