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Accounts receivable turnover and days sales in receivables For two recent years, Robinhood Company reported the following: 20Y9 20Y8 Sales $7,906,000 $6,552,000 Accounts receivable: Beginning
Accounts receivable turnover and days sales in receivables
For two recent years, Robinhood Company reported the following:
20Y9 | 20Y8 | |
Sales | $7,906,000 | $6,552,000 |
Accounts receivable: | ||
Beginning of year | 600,000 | 520,000 |
End of year | 580,000 | 600,000 |
a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place.
20Y8:
20Y9:
b. Determine the days sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place.
20Y8:
20Y9:
c. Are the changes in the accounts receivable turnover and days sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?
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