Answer And Explanation:
Please see answer and explanation attached
Accounts receivable turnover is the number of times that a company collects its average account receivable per year. The ratio evaluates the ability of a company to issue credit to its customers efficiently and collect funds from them in a timely manner. A high turnover ratio indicates a number of high-quality customers. A low turnover ratio represents a large proportion of clients having financial difficulties. It also indicates an excessive amount of bad debt.
To answer the question -- what is the accounts receivable turnover for the imagine company, use this computation:
Given:
Net Sales - $1,000,000
Beginning Account Receivable =$700,000
Ending Accounts Receivable = $300,000
Let X = Accounts Receivable Turnover
X = Net Sales ÷ ((Beginning Accounts Receivable + Ending Accounts Receivable) / 2)
X= 1,000,000/ (700,000+300,000)/2
X = 1,000,000/ (1,000,000/2)
X = 1,000,000/500,000
X = 2
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Answer:
b. increase as the demand for high tech skills increases.
Explanation:
Due to the fact that the demand for technological products is increasing, the demand for people who possess high tech skills would also increase as firms would want to provide more tech products to satisfy the demand of consumers.
This would lead to an increase the demand for people with high tech skills. When demand exceeds supply, wages would rise.
I hope my answer helps you
