You review the above information for your daycare business and it reveals decreasing profits despite increasing sales. You hire an analyst who highlights several points, including that ?Accounts receivable turnover is too low. Tighter credit policies are recommended along with discontinuing service to those most delayed in payments.? How do you interpret these recommendations? What actions do you take? Round calculations to two decimal places.

Transcribed Image Text:

2019 2020 2018 Net sales.. $1,550,000 $1,122,000 105,500 488,350 $998,000 70,750 501,800 388,500 Accounts receivable. Profit 471,000