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 Playworlds receivables? If so, suggest a possible explanation for your findings.