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The Longo Corporation disclosed the following financial information (in millions) in its recent annual report: Year 1 Year 2 Net sales $317,740 $279,155 Beginning
The Longo Corporation disclosed the following financial information (in millions) in its recent annual report: Year 1 Year 2 Net sales $317,740 $279,155 Beginning accounts receivable (net) 62,272 53,872 Ending accounts receivable (net) 53,872 46,186 a. Calculate the accounts receivable turnover ratio for both years. b. Calculate the average collection period for both years. Notes: 1. Round all answers to one decimal place. 2. Use rounded answer from part a. to compute average collection period. a. Accounts receivable turnover b. Average collection period (days) Year 1 Year 2 c. Is the company's accounts receivable management improving or deteriorating?
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