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.?

Identify the categories of cash flows in the statement of cash flows.

Understand the concept of cash equivalents.

Recognize transactions affecting cash flows from financing activities.

Understand how transactions not involving cash are reported in financial statements.

---

Definitions:

Spacing Effect

The phenomenon that information is better retained when study sessions are spaced out over time rather than crammed in a short period.

Source Amnesia

A memory disorder where an individual can remember certain information but is unable to recall how, when, or where they learned it.

Hypnotic Suggestion

A technique used in hypnosis where a suggestion is made to the individual to trigger a change in perception, cognition, or behavior.

Spacing Effect

A phenomenon where learning is more effective when study sessions are spaced out over time rather than conducted in one single marathon session.