Question
Accounts receivable turnover and days' sales in receivables For two recent years, Robinhood Company reported the following: 20Y9 20Y8 Sales $7,638,000 $6,435,000 Accounts receivable: Beginning
Accounts receivable turnover and days' sales in receivables
For two recent years, Robinhood Company reported the following:
20Y9 20Y8
Sales $7,638,000 $6,435,000
Accounts receivable:
Beginning of year 580,000 520,000
End of year 560,000 580,000
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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