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v You review the below information for your daycare business and it reveals decreasing profits despite increasing sales. You hire an analyst who highlights several
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You review the below information for your daycare business and it reveals decreasing profits despite increasing sales. You hire an analyst who highlights several points, including that "Accounts receivable turnover is too low. Tighter credit policies are recommended along with discontinuing service to those most delayed in payments." Net sales Accounts receivable Profit 2020 $1,487,000 457,750 395,000 Accounts receivable turnover 2019 $1,079,000 116,750 413,500 2020 Calculate the account receivable turnover for 2020 and 2019. Indicate whether the change in accounts receivable turnover is favourable or unfavourable. (Round the final answers to 2 decimal places.) Amos 2018 $988,000 2019 87,250 425,650 times D Step by Step Solution
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