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Accounts receivable turnover and days sales in receivables Financial statement data for years ending December 31 for Cinderella Company follow: 20Y9 20Y8 Sales $9,525,000 $7,616,000
Accounts receivable turnover and days sales in receivables
Financial statement data for years ending December 31 for Cinderella Company follow:
20Y9 | 20Y8 | |||||
Sales | $9,525,000 | $7,616,000 | ||||
Accounts receivable: | ||||||
Beginning of year | 715,000 | 645,000 | ||||
End of year | 785,000 | 715,000 |
a. Determine the accounts receivable turnover for 20Y9 and 20Y8. If required, round the final answers to one decimal place.
Accounts Receivable Turnover | |
20Y9 | |
20Y8 |
b. Determine the days sales in receivables for 20Y9 and 20Y8. Use 365 days, if required round the final answers to one decimal place.
Days Sales in Receivables | |||
20Y9 | days | ||
20Y8 | days |
c. Does the change in accounts receivable turnover and the days sales in receivables from 20Y8 to 20Y9 indicate a favorable or unfavorable change?
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