Accounts receivable analysis

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.

20YK

20Y2

20Y1

Accounts receivable, end of year

Sales on account

$715,000

15,627,000

$665,000

$590,000

4,553,500

This information has been collected in the Microsoft Excel Online flle. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

a. For 20Y2 and 203, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume a 365-day year. Do not round intermediate calculations. Round your answers to one decimal place.

20Y3

20Y2

1. Accounts receivable turnover
2. Number of days' sales in receivables

b. The collection of accounts recelvable has improved decrease

in the collection period.

days

davs

This can be seen in both the increase

V In accounts receivable turnover and the