Question: The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/60. a. Determine for each year

The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/60.

a. Determine for each year (1) the accounts receivable turnover and (2) the number of days? sales in receivables. Round to nearest dollar and one decimal place.

b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?

2010 2009 2008 $147,500 $165,000 Accounts receivable, end of year Net sales on account $158,000 900,000 975,000

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