Question
Accounts receivable turnover and days sales in receivables For two recent years, Robinhood Company reported the following: 20Y9 20Y8 Sales $8,844,000 $7,245,000 Accounts receivable: Beginning
Accounts receivable turnover and days sales in receivables
For two recent years, Robinhood Company reported the following:
20Y9 | 20Y8 | |
Sales | $8,844,000 | $7,245,000 |
Accounts receivable: | ||
Beginning of year | 670,000 | 590,000 |
End of year | 650,000 | 670,000 |
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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