The Robinson Company from Problem 2 had net sales of $1,200,000 in 2019 and $1,300,000 in 2020.

a. Determine the receivables turnover in each year.

b. Calculate the average collection period for each year.

c. Based on the receivables turnover for 2019, estimate the investment in receivables if net sales were $1,300,000 in 2020. How much of a change in the 2020 receivables occurred?

Data from Problem 2

The Robinson Company has the current assets and current liabilities for the two years listed in the text. If sales in 2019 were $1.2 million and sales in 2020 were $1.3 million, and cost of goods sold were 70 percent of sales, how long were Robinson’s operating cycles and cash conversion cycles in each of these years? What caused them to change during this time?