A-1 (5 marks) Information follows for Kulos Company: 1. The beginning-of-the-year Accounts Receivable balance was...
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A-1 (5 marks) Information follows for Kulos Company: 1. The beginning-of-the-year Accounts Receivable balance was $25,000. 2. Net sales for the year were $410,000. (Credit sales were $200,000 of the total sales.) Kulos does not offer cash discounts. 3. Collections on accounts receivable during the year were $ 140,000. Instructions a. Calculate Kulos Company's accounts receivable turnover ratio for the year. How old is the average receivable? b. Use the turnover ratio calculated in part (b) to analyze Kulos Company's liquidity. The turnover ratio last year was 4.85
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