Reference no: EM132469960
Accounts receivable turnover and days' sales in receivables
Financial statement data for years ending December 31 for Chiro-Solutions Company follow:
20Y2 20Y1
Sales $2,912,000 $2,958,000
Accounts receivable:
Beginning of year 300,000 280,000
End of year 340,000 300,000
Question a. Determine the accounts receivable turnover for 20Y2 and 20Y1. If required, round the final answers to one decimal place.
Accounts
Receivable
Turnover
20Y2:
20Y1 :
Question b. Determine the days' sales in receivables for 20Y2 and 20Y1. Use 365 days, if required round the final answers to one decimal place.
Days' Sales
in Receivables
20Y2___days
20Y1___days
Question c. Does the change in accounts receivable turnover and the days' sales in receivables from 20Y1 to 20Y2 indicate a favorable or unfavorable change?
A.Favorable
B.Unfavorable