Question
Accounts receivable turnover and days' sales in receivables For two recent years, Robinhood Company reported the following: 20Y920Y8 Sales$7,437,000$6,201,000Accounts receivable:Beginning of year560,000500,000End of year550,000560,000 a.
Accounts receivable turnover and days' sales in receivables
For two recent years, Robinhood Company reported the following:
20Y920Y8Sales$7,437,000$6,201,000Accounts receivable:Beginning of year560,000500,000End of year550,000560,000
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:days
20Y9:days
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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