You review the above information for your daycare business and it reveals decreasing profits despite increasing sales. You hire an analyst who highlights several points, including that €œAccounts receivable turnover is too low. Tighter credit policies are recommended along with discontinuing service to those most delayed in payments.€ How do you interpret these recommendations? What actions do you take? Round calculations to two decimalplaces.

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2014 2013 2012 Net sales. 1,440,000 $1,040,000 960,000 65,600 417,600 352,000 392,000 86,400 408,000 Net income.