Financial statement data for years ending December 31 for Chiro-Solutions Company follows: ________________2016 2015 Sales .............................. $2,912,000

Question:

Financial statement data for years ending December 31 for Chiro-Solutions Company follows:

____________________________2016 ____________2015

Sales .............................. $2,912,000 ........... $2,958,000

Accounts receivable:

Beginning of year .................. 300,000 .............. 280,000

End of year .......................... 340,000 .............. 300,000

a. Determine the accounts receivable turnover for 2016 and 2015.

b. Determine the number of days' sales in receivables for 2016 and 2015. Use 365 days and round to one decimal place.

c. Does the change in accounts receivable turnover and the number of days' sales in receivables from 2015 to 2016 indicate a favorable or an unfavorable trend?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...