Matrix Corp. reported the following figures from its financial statements for the years 2013 through 2015. Required:
A. Calculate for 2015:
1. Accounts receivable turnover
2. Average collection period
B. Calculate for 2014:
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 2014 to 2015. Then discuss how the trend in sales from 2013 to 2014 and 2015 may have affected the change in the ratios from 2014 to 2015.

Question

Matrix Corp. reported the following figures from its financial statements for the years 2013 through 2015.  Required: 
A. Calculate for 2015:
1. Accounts receivable turnover
2. Average collection period
B. Calculate for 2014:
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 2014 to 2015. Then discuss how the trend in sales from 2013 to 2014 and 2015 may have affected the change in the ratios from 2014 to 2015.

Quizplus · Accepted Answer

The Answer of Matrix Corp. reported the following figures from its financial statements for the years 2013 through 2015.  Required: 
A. Calculate for 2015:
1. Accounts receivable turnover
2. Average collection period
B. Calculate for 2014:
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 2014 to 2015. Then discuss how the trend in sales from 2013 to 2014 and 2015 may have affected the change in the ratios from 2014 to 2015.