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A Company Reported Net Sales for 2016 of $265,000 and $545,000

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Essay

A company reported net sales for 2016 of $265,000 and $545,000 for 2017. The year-end balances of accounts receivable were $39,000 for 2016 and $92,000 for 2017. Calculate the days' sales uncollected at the end of each year for this company and describe any changes in the apparent liquidity of the company's receivables.


Definitions:

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Swiss Chocolate

High-quality chocolate produced in Switzerland, known globally for its superior craftsmanship and ingredients.

Consumption Declines

A decrease in the amount of goods and services purchased and consumed by individuals or households.

Perfectly Elastic

Describes a situation in economic theory where the quantity demanded or supplied changes infinitely in response to any change in price.

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