Accounts Receivable Turnover and Average Collection Period

The Forrester Corporation disclosed the following financial information $($in millions$)$ in its recent annual report:

Year $1$ Year $2$

Net sales $$33,548$ $$40,831$

Beginning accounts receivable $($net$)8,1827,762$

Ending accounts receivable $($net$)7,7627,556$

a$.$ Calculate the accounts receivable turnover ratio for both years.

b$.$ Calculate the average collection period for both years.

Notes:

$1.$ Round all answers to one decimal place.

$2.$ Use rounded answer from part a$.$ to compute the average collection period.

Year $1$ Year $2$

a$.$ Accounts receivable turnover

b$.$ Average collection period $($days$)$

c$.$ Is the company$$s accounts receivable management improving or deteriorating?

Answer

Please answer all parts of the question.