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 $$213,611$ $$245,656$

Beginning accounts receivable $($net$)26,20525,445$

Ending accounts receivable $($net$)25,44525,072$

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

$0$

Answer

$0$

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

$0$

Answer

$0$

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

Answer