ANSWERS TO QUESTIONS

Net Sales = $100,000 = 5.71 times Average Trade Receivables (net) ($15,000 + $20,000*)/2 *($15,000 + $100,000 – $70,000 – $25,000) Average number of days to collect = 365 = 63.92 days 5.71 With the factoring transaction, Jones Company’s turnover ratio still declines but by less than in the earlier exercise. ................
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