The Following Account Balances Are Taken from Everest Events at December

question 59

Essay

The following account balances are taken from Everest Events at December 31.
$$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 6 } & \mathbf { 2 0 1 5 } \\\hline \text { Accounts receivable } & 170,230 & 260,450 \\\hline \text { Net sales } & 1,500,750 & 1,450,600 \\\hline\end{array}$$
Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

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Definitions:

Peak-period Demand

Refers to higher demand for products or services during certain periods, often influenced by seasons, holidays, or specific events.

Electric Power Plant

A facility that generates electricity through various means like coal, natural gas, nuclear energy, or renewable sources.

Kilowatt-hours

A unit of energy measurement equivalent to one kilowatt of power expended for one hour, commonly used to measure electricity consumption.

Fixed Costs

Expenses that remain constant regardless of the amount of output or sales, like lease payments, wages, and premiums.