The following data are taken from the financial statements of Ovation Industries Inc. Terms of all sales are 1/10, n/55.

a. Determine for each year (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round to nearest dollar and to one decimal place.
b. What conclusions can be drawn from these data concerning accounts receivable and creditpolicies?

Transcribed Image Text:

Accounts receivable, end of year Monthly average accounts receivable (net) Net sales 2008 48,219 45,070 320,000 2007 s 52,603 46,154 300,000