Business, 06.04.2020 18:24, champions2k19

The financial statements of Minnesota Mining and Manufacturing Company (3M) report net sales of $20.0 billion. Accounts receivable (net) are $2.7 billion at the beginning of the year and $2.8 billion at the end of the year.
1. Compute 3M's account receivable turnover.
2. Compute 3M's average collection period for accounts receivable in days.

Answers: 1

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Answers

answered: minnie7760

Explanation:

Given:

Net sales: $20.0 billion.

Accounts receivable:

The beginning of the year: $2.7 billionThe end of the year $2.8 billion

a. Compute 3M's account receivable turnover.

We need to find the average account receivable:

= (the beginning account receivable + the ending account receivable) / 2

= ($2.7 billion + $2.8 billion) / 2

= $5.5 billion / 2

= $2.74 billion

Accounts Receivable turnover ratio:

= Net annual credit sale ÷ Average accounts receivable

= $20.0 billion: $2.74 billion

= 7.3 time.

3M's average collection period for accounts receivable in days

= 365/Accounts Receivable turnover ratio:

= 365/7.3

= 50 days.

answered: daniiltemkin20

1. 7.27 times

2. 50.19 days

Explanation:

The receivables turnover is the ration of net sales to average accounts receivable. The average accounts receivable is the sum of the receivables at the beginning of the period and that at the end of the period divided by 2.

The average collection period is the ratio of the total number of days in the period to the receivables turnover ratio measured in days.

Account receivable turnover = net sales/average accounts receivable

average accounts receivable = (beginning balance + ending balance)/2

Collection period for Accounts receivable in days = 365/Account receivable turnover

Account receivable turnover = 20/(2.7 + 2.8)/2

= 40/5.5

= 7.27 times

Collection period for Accounts receivable in days = 365/7.27

= 50.19 days

answered: Guest

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

answered: Guest

fractionally backed paper money

fiat money

paper money

metallic money

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The financial statements of Minnesota Mining and Manufacturing Company (3M) report net sales of $20....