Accounts Receivable Analysis

The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are $\frac{2}{10},\frac{n}{30}.$

a$.$ For Years $2$ and $3,$ determine $(1)$ the accounts receivable turnover and $(2)$ the number of days' sales in receivables. Assume there are $365$ days in

the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place.Accounts receivable turnover

Number of days' sales in receivables

days

days

b$.$ What conclusion can be drawn from these data concerning accounts receivable and credit policies?

The collection of accounts receivable has

$.$ This can be seen in the.

in accounts receivable turnover and the

in the collection period. The company either became

I aggressive in collecting accounts receivable or

restrictive in granting credit to customers in Year $3.$