Question
Accounts receivable turnover and days sales in receivables For two recent years, Robinhood Company reported the following: 20Y9 20Y8 Sales $7,504,000 $6,313,000 Accounts receivable: Beginning
Accounts receivable turnover and days sales in receivables
For two recent years, Robinhood Company reported the following:
| 20Y9 | 20Y8 | |
| Sales | $7,504,000 | $6,313,000 |
| Accounts receivable: | ||
| Beginning of year | 570,000 | 500,000 |
| End of year | 550,000 | 570,000 |
a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place.
20Y8: fill in the blank 1
20Y9: fill in the blank 2
b. Determine the days sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place.
20Y8: fill in the blank 3 days
20Y9: fill in the blank 4 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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Managerial Accounting A Focus on Ethical Decision Making
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
5th edition
978-0324663853
