The following data are taken from the financial statements of Mercado Decorations: (a) Compute for each year

Question:

The following data are taken from the financial statements of Mercado Decorations:

(a) Compute for each year
(1) The receivables turnover and
(2) The average collection period.
At the end of 2007, accounts receivable (net) was $490,000.
(b) What conclusions about the management of accounts receivable can be drawn from thesedata?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...