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The following information is from the annual financial statements of Raheem Company. Year 3:$ 489,000 Year 2: $ 420,000 Year 1: $ 461,000 Net sales

The following information is from the annual financial statements of Raheem Company.

Year 3:$ 489,000

Year 2: $ 420,000

Year 1: $ 461,000

Net sales

Accounts receivable, net (year-end): Year 3: 50,000

Year 2:47,800

Year 1:44,500

(1) Compute its accounts receivable turnover for Year 2 and Year 3.

(2) Assuming its competitor has a turnover of 15.0, is Raheem performing better or worse at collecting receivables than its competitor?

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