Determine the accounts receivable turnover

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Question - Accounts receivable turnover and days' sales in receivables - For two recent years, Robinhood Company reported the following:

 

20Y9

20Y8

Sales

$8,046,500

$6,728,000

Accounts receivable:

 

 

Beginning of year

610,000

550,000

End of year

600,000

610,000

Required -

a. Determine the accounts receivable turnover for 20Y9 and 20Y8.

b. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place.

c. Are the changes in the accounts receivable turnover and days' sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?

Reference no: EM133189856

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