The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are

Question:

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.

_________________________________________20Y3 20Y2 20Y1

Accounts receivable, end of year.........$ 725,000.........$ 650,000.......$600,000

Sales on account.............................5,637,500.........4,687,500

A. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. (Round to the nearest dollar and one decimal place.)

B. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

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... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...