Assessing How Well Companies Manage Their Receivables Assume that Hickory Company has the following data related to its accounts receivable:

Use these data to compute accounts receivable turnover ratios and average collection periods for 2008 and 2009. Based on your analysis, is Hickory Company managing its receivables better or worse in 2009 than it did in 2008?

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Net sales Net receivables: Beginning of year End of year 2008 2009 $1,425,000 $1,650,000 375,000 333,500 420,000 375,000