Question 1 [5 points]

The following financial statements are for Barton Corporation.

Question 1 [5 points] The following financial statements are for Barton Corporation. Barton Corporation Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2013 2012 Sales 1,002,900 1,138,600 989,400 Cost of goods sold 941,000 906,000 872,100 Gross profit from sales 61,900 232,600 117,300 Operating expenses 25,100 29,800 25,700 Operating income 36,800 202,800 91,600 Interest expense 3,100 3,250 3,250 Income before taxes 33,700 199,550 88,350 Income taxes 30.900 33,400 30,800 Net income 2,800 166,150 57,550 Barton Corporation Balance Sheet December 31, 2014, 2013, and 2012 Assets 2014 Cash 41,800 Short-term investments 68,000 Accounts receivable, net 41,900 Merchandise inventory 70,000 Prepaid expenses 4,200 Notes receivable, due in 2017 14,500 Property, plant and equipment, net 273,000 Total assets 513,400 Liabilities and Equity Accounts payable 22,100 Salaries payable 21,400 Income taxes payable 11,050 Long-term note payable secured by mortgage on plant assets 58,000 Share capital 220,000 Retained earnings 180,850 Total liabilities and equity. 513,400 2013 40,700 67,000 49,700 81,200 5,100 12.500 342.000 598.200 2012 35,600 62,000 57,100 93,200 4,500 14.000 296.000 562,400 22,900 19,400 11,650 71,000 220.000 253,250 598.200 19.200 19,900 10,850 75,000 220,000 217,450 562,400 Compute the accounts receivable turnover below, and indicate whether the change from year to year is favourable or unfavourable. For your analysis, assume that all other things have remained constant. Apply your analysis in very general terms. All values should be accurate to at least two decimal places. Ratio 2014 2013 Measure of Analysis Accounts receivable turnover (select one) (select one)