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1. Playworld, Inc. sells playground equipment to schools and municipalities. Invoices are mailed at the end of each month for all goods shipped during that
1. Playworld, Inc. sells playground equipment to schools and municipalities. Invoices are mailed at the end of each month for all goods shipped during that month; credit terms are net 30 days. Sales and accounts receivable data for 2008, 2009, and 2010 were as follows: 2008 2009 2010 Sales $2,560,975 $2,663,414 $2,903,121 Year-end receivables $328,330 $342,120 $396,859 A. Calculate the growth rates in sales and receivables during 2009 and 2010. B. Do your calculations indicate any potential problems with Playworlds receivables? If so, suggest a possible explanation for your findings
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