Exercise 7-20 (Part Level Submission)

Presented below is information for Ayayai Company.

1.		Beginning-of-the-year Accounts Receivable balance was $24,900.
2.		Net sales (all on account) for the year were $105,300. Ayayai does not offer cash discounts.
3.		Collections on accounts receivable during the year were $84,300.

Compute Ayayais accounts receivable turnover and days to collect receivables for the year. The company does not believe it will have any bad debts. (Round answers to 2 decimal places, e.g. 4.57.)

Accounts receivable turnover			times
Days to collect accounts receivable			days

Use the results to analyze Ayayai's liquidity. The turnover ratio last year was 5.3.

This is a

trend in liquidity.