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 $$169,918$ $$195,409$

Beginning accounts receivable $($net$)24,13623,436$

Ending accounts receivable $($net$)23,43623,093$

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 Answer

Answer

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

Answer

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

Answer