Reference no: EM132470175
Accounts receivable turnover and days' sales in receivables
Financial statement data for years ending December 31 for Robinhood Company follow:
20Y9 20Y8
$7,906,000 $6,726,000
Accounts receivable:
Beginning of year 600,000 540,000
End of year 80,000 600,000
Problem A. Determine the accounts receivable turnover for 20Y9 and 20Y8. If required, round the final answers to one decimal place.
Accounts Receivable Turnover
Problem B. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days, if required round the final answers to one decimal place.
Days' Sales in Receivables
20Y9____days
20Y8____days
Problem C. Does the change in accounts receivable turnover and the days' sales in receivables from 20Y8 to 20Y9 indicate a favorable or unfavorable change?
A. Favorable
B. Unfavorable