Accounts receivable turnover and number of days’ sales in receivables OBJ. 8 Financial statement data for years ending December 31 for Robinhood Company follows:

2016 2015 Sales $7,906,000 $6,726,000 Accounts receivable:

Beginning of year 600,000 540,000 End of year 580,000 600,000

a. Determine the accounts receivable turnover for 2016 and 2015.

b. Determine the number of days’ sales in receivables for 2016 and 2015. Use 365 days and round to one decimal place.

c. Does the change in accounts receivable turnover and the number of days’ sales in receivables from 2015 to 2016 indicate a favorable or an unfavorable trend?

EE 8-5 p. 379 SHOW ME HOW EE 8-6 p. 381 SHOW ME HOW EE 8-6 p. 381 SHOW ME HOW Exercises