select all that apply the following annual account balances are taken from abc co at year end. current year…

select all that apply the following annual account balances are taken from abc co at year end. current year 1 year ago accounts receivable $49,500 $48,000 net sales $580,000 $535,000 days sales uncollected 31.15 days 32.74 days select the statements below that are correct regarding abc co.s ability to collect its receivables from customers. abc co. has increased the amount of time it takes to collect receivables from customers from 1 year ago. abc co. has shortened the amount of time it takes to collect receivables from customers from 1 year ago to the current year. abc co. has shortened the amount of time that money is tied up in receivables from 1 year ago. abc co. took approximately 31 days to collect cash from its credit customers in the current year.

select all that apply the following annual account balances are taken from abc co at year end. current year 1 year ago accounts receivable $49,500 $48,000 net sales $580,000 $535,000 days sales uncollected 31.15 days 32.74 days select the statements below that are correct regarding abc co.s ability to collect its receivables from customers. abc co. has increased the amount of time it takes to collect receivables from customers from 1 year ago. abc co. has shortened the amount of time it takes to collect receivables from customers from 1 year ago to the current year. abc co. has shortened the amount of time that money is tied up in receivables from 1 year ago. abc co. took approximately 31 days to collect cash from its credit customers in the current year.

Answer

Explanation:

Step1: Analyze Days Sales Uncollected change

The Days Sales Uncollected was 32.74 days 1 year ago and 31.15 days in the current year. Since 31.15 < 32.74, the time to collect receivables has decreased.

Step2: Evaluate each statement

  • The first statement says the time to collect has increased, which is false as the number of days has gone down.
  • The second statement is true because 31.15 days (current - year) is less than 32.74 days (1 - year ago), so the time to collect receivables has been shortened.
  • The third statement is true. Since the time to collect receivables has decreased, the money is tied - up in receivables for a shorter time compared to 1 year ago.
  • The fourth statement is true as the Days Sales Uncollected in the current year is 31.15 days, which is approximately 31 days.

Answer:

ABC Co. has shortened the amount of time it takes to collect receivables from customers from 1 year ago to the current year. ABC Co. has shortened the amount of time that money is tied up in receivables from 1 year ago. ABC Co. took approximately 31 days to collect cash from its credit customers in the current year.