Question: Based on the following data and using a 365-day year: 12/31/Year 1 accounts receivable 12/31/Year 2 accounts receivable For the year ended 12/31/Year 1, sales
Based on the following data and using a 365-day year: 12/31/Year 1 accounts receivable 12/31/Year 2 accounts receivable For the year ended 12/31/Year 1, sales For the year ended 12/31/Year 2, sales $100,000 70,000 1,050,000 1,200,000 a. Compute the accounts receivable turnover for year 2. Round your answer to two decimal places b. Compute the number of days' sales in receivables for year 2. Round your answer to two decimal places. days c. The industry average turnover is 20 times during the year, and the number of days' sales in receivables averages 25. How does this situation compare to the industry average
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