The following data are taken from the financial statements of Morino Company.

(a) Compute for each year(1) The receivables turnover and(2) The average collection period. At the end of 2009, accounts receivable (net) was $480,000.(b) What conclusions about the management of accounts receivable can be drawn from thesedata?

Transcribed Image Text:

2010 2011 Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/60. $ 550,000 3,960,000 3,100,000