Financial statement data for years ending December 31 for Robinhood Company follow: ____________ 20Y9 20Y8 Sales

Question:

Financial statement data for years ending December 31 for Robinhood Company follow:

______________________ 20Y9 __________ 20Y8

Sales ...................... $7,906,000 ...... $6,726,000

Accounts receivable:

Beginning of year ......... 600,000 ........... 540,000

End of year ................ 580,000 ........... 600,000

a. Determine the accounts receivable turnover for 20Y9 and 20Y8.

b. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days and round to one decimal place.

c. Does the change in accounts receivable turnover and the days' sales in receivables from 20Y8 to 20Y9 indicate a favorable or unfavorable change?

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...