Financial Statement Data for the Years Ended December 31 for Parker

question 149

Essay

Financial Statement data for the years ended December 31 for Parker Corporation is as follows:
2012 2011
Net Sales $2,595,600 $2,409,500
Accounts Receivable
Beginning of the year $ 390,000 $400,000
End of the year 434,000 390,000
a) Determine the accounts receivable turnover for 2012 and 2011.
b) Determine the number of days' sales in receivables for 2012 and 2011.
c) Does the change in accounts receivable turnover and number of days' sales in receivables from 2011 to 2012 indicate a favorable or unfavorable trend.?

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Definitions:

Pledged Assets

Assets that are offered as security or collateral for a loan or obligation.

Priority

The order of importance or urgency, often used in legal and financial contexts to determine the sequence in which obligations are to be met or rights are to be exercised.