Accounts receivable analysis

The following data are taken from the financial statements of Saladin Inc. Terms of all sales are 2/10, n/60

A. Determine for each year
(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?

Transcribed Image Text:

2012 221,250 2011 237,000 2010 S 247,500 Accounts receivable, end of year Net sales on account S S112,225 S 1,380,825 S