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The following data are taken from the financial statements of Stuffy Limited: 2021 2020 Monthly average accounts receivable $ 520,000 $ 550,000 Net sales on

The following data are taken from the financial statements of Stuffy Limited:

2021 2020

Monthly average accounts receivable $ 520,000 $ 550,000

Net sales on account 5,980,000 4,950,000

Terms for all sales are n/30

Calculate the receivables turnover and the collection period for both years.

What conclusion can an analyst draw about the management of the accounts receivable?

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