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Playworld, Inc. sells playground equipment to schools and municipalities. Invoices are mailed at the end of each month for all goods shipped during that month;
Playworld, Inc. sells playground equipment to schools and municipalities. Invoices are mailed 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 were as follows: 20X1 20X2 20X3 Sales $2,560,975 $2,663,414 $2,903,121 Year-end receivables $ 328,330 $ 342,120 $ 396,859 Required: a. Calculate the growth rates in sales and receivables during 20x2 and 20X3. b. Do your calculations indicate any potential problems with Playworld's receivables? If so, suggest a possible explanation for your findings
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