The following data are taken from the financial statements of Rise and Shine Company. Terms of all
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The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30.
a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the days’ sales in receivables. Round to nearest dollar and one decimal place.
b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?
Transcribed Image Text:
Year 3 Year 2 Year 1 Accounts receivable, end of year $ 450,000 $ 375,000 $300,000 Sales 2,640,000 1,957,500
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a 1 2 1 412500 375000 450000 2 2 7233 2640000 365 days 3 337500 300000 375000 2 4 5363 ...View the full answer
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