Answer:
b. Gross Receivable = Net receivable +Allowance
2014 = $306.8 + $13 = $319.80
2013 = $287.3 + $14.5 = $301.8
Allowance as a % of Gross receivable = Allowance / Gross receivable
2014 = $13/319.80 = 0.041 = 4.1%
2013 = $14.5/301.8 = 0.015 = 1.5%
c. Average Net Accounts receivable = (Accounts receivable, net 2014 + Accounts receivable, net 2013) / 2 = ($306.8 + $287.3] / 2 = $297.05
Receivable Turnover = Net credit sales / Average Net Accounts receivable
Receivable Turnover = $2,989 / $297.05
Receivable Turnover = 10.06 Times
d) Cash received in 2014 = Beginning Gross receivables + Net sales - Ending Gross receivables-Adjustment in allowance (Write-off 2014)
Cash received in 2014 = $301.8 + $2,989 - $319.8 - $4.3
Cash received in 2014 = $2,966.7
Increase in customer deposits = $16 - 13.5 = $2.5
Total Cash received from customers in 2014 = Cash received in 2014 + Increase in customer deposits
Total Cash received from customers in 2014 = $2,966.7 + $2.5
Total Cash received from customers in 2014 = $2969.20
