Posted: July 28th, 2024
The Hawk Company wants to determine the liquidity of
(Solved) - Compute the number of daysâ sales in receivables at December 31,... - (1 Answer) | TranstutorsThe Hawk Company wants to determine the liquidity of its receivables. It has supplied you with the following data regarding selected accounts for December 31, 2000, and 1999:20001999Net sales$1,180,178$2,200,000Receivables, less allowance for losses and discountsBeginning of year (allowance for losses anddiscounts, 2000â$12,300; 1999â$7,180)240,360230,180End of year (allowance for losses anddiscounts, 2000â$11,180; 1999â$12,300)220,385240,360Required a. Compute the number of daysâ sales in receivables at December 31, 2000, and 1999.b. Compute the accounts receivable turnover for 2000 and 1999. (Use year-end gross receivables.)c. Comment on the liquidity of the Hawk Company receivables.
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