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eBook Show Me How The following select financial statement information from Candid Photography. CANDID PHOTOGRAPHY Year Net Credit Sales Ending Accounts Receivable 2017 $2,988,000
eBook Show Me How The following select financial statement information from Candid Photography. CANDID PHOTOGRAPHY Year Net Credit Sales Ending Accounts Receivable 2017 $2,988,000 $1,294,450 2018 2019 3,754,860 4,001,350 1,346,600 1,546,550 A. Compute the accounts receivable turnover ratios and the number of days' sales in receivables ratios for 2018 and 2019. Round your answers to two decimal places. ART Days' Sales 2018 times days 2019 times days B. What do the outcomes tell a potential investor about Candid Photography if industry average for accounts receivable turnover ratio is 3 times and days' sales in receivables ratio a. Candid collects its accounts more quickly than its competitors. b. A lender may favour Candid over its competitors because of its faster collection period. c. Past data suggests that the collection period is increasing from 2018 to 2019, which is something that might concern an investor if this trend were to continue. d. All of the above statements may be correct.
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