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

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?

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20Υ2 20Υ1 20Υ3 Accounts receivable, end of year Sales on account $ 725,000 5,637,500 $ 650,000 4,687,500 $600,000