The following account balances are taken from the records of the Odessa Industries:
Odessa extends credit terms requiring full payment in 45 days, with no discount for early payment. REQUIRED:
1. Compute Odessa's accounts receivable turnover ratio for 2016 and 2015.
2. Compute the number of days' sales in receivables for 2016 and 2015. Assume 360 days in a year.
3. Comment on the efficiency of Odessa's collection efforts over the twoyear period.

Question

The following account balances are taken from the records of the Odessa Industries:
  Odessa extends credit terms requiring full payment in 45 days, with no discount for early payment. REQUIRED:
1. Compute Odessa's accounts receivable turnover ratio for 2016 and 2015.
2. Compute the number of days' sales in receivables for 2016 and 2015. Assume 360 days in a year.
3. Comment on the efficiency of Odessa's collection efforts over the two­year period.

Quizplus · Accepted Answer

The Answer of The following account balances are taken from the records of the Odessa Industries:
  Odessa extends credit terms requiring full payment in 45 days, with no discount for early payment. REQUIRED:
1. Compute Odessa's accounts receivable turnover ratio for 2016 and 2015.
2. Compute the number of days' sales in receivables for 2016 and 2015. Assume 360 days in a year.
3. Comment on the efficiency of Odessa's collection efforts over the two­year period.

The Following Account Balances Are Taken from the Records of the Odessa