Exercise 9-11 Determining whether it's a real sale (LO9-3)

Blue, Inc., sells playground equipment to schools and municipalities. It mails invoices at the end of each month for all goods shipped during that month; credit terms are net 30 days. Sales and accounts receivable data for 20X1, 20X2, and 20X3 follow:

	Years Ending December 31,
	20X1	20X2	20X3
Sales	$	1,785,980		$	1,839,559		$	1,986,724
Accounts receivable at year-end		220,189			227,896			267,094

Required:

1. Calculate the rates of increase in sales and in receivables during 20X2 and 20X3. (Do not round intermediate calculations. Round "Sales grew" answers to the nearest whole percent and "Receivables grew" answers to 1 decimal place.)
2. Do your calculations indicate any potential problems with Blues receivables

1.Sales grew

20X2%

20X3%

Receivables grew

20X2%

20X3%

2.Do your calculations indicate any potential problems with Blues receivables?