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

a. For 2012 and 2011, determine
(1) The accounts receivable turnover and
(2) The number of days’ sales in receivables. Round to nearest dollar and one decimal place.
b. What conclusions can be drawn from these data concerning accounts receivable and creditpolicies?

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2012 2011 2010 Accounts receivable, end of year 160,000 150,000 120,000 Net sales on account 1,519,000 ,215,000