‫الرقم الجامعي‪2140828:‬‬ ‫االسم ‪ :‬فرح محمد إبراهيم رمضان‪.

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1. Compute the number of day’s sales in receivables for the two years.
2. Compute the accounts receivable turnover.
3. Compute the accounts receivable turnover in days.
4. Comment on the results of question # 1.
5. Comment on the results of question # 2, taking into consideration
that the industry
average for accounts receivable turnover is (almost) 7 times.
6. Comment on the results of question # 3, taking into consideration
that the industry average for accounts receivable turnover in days is 45
days.

1.Day’s sales in receivables 2011= 25.51 day’s

Day’s sales in receivables 2012 = 29.05 day’s

2.Accounts receivable turnover 2012 = 12.95 times

3. Accounts receivable turnover in days = 28.17 day’s

4. The increase in day’s sales in receivables from 25.51 days at

the end of 2011 to 29.05 days at the end of 2012 indicates a
negative trend in the control of receivables.

5. The turnover of receivables increased from 7 times per year

to 12.95 times per year at the end of 2012 this would be a
positive trend.

6. Accounts receivable turnover in days decreased from 45days

to 28.17days in 2012.This would represent positive trend.