The following information is from the financial statements of Exquisite Ensembles:
$$\begin{array} { | l | r | r | r | }
\hline & \text { YR 3 } & \text { YR 2 } & \text { YR 1 } \
\hline \text { Net sales } & \$ 1,260,000 & \$ 1,020,000 & \$ 850,000 \
\hline \text { Accounts receivable (Dec 31) } & 92,800 & 88,000 & 84,200 \
\hline
\end{array}$$ Calculate Exquisite Ensembles' accounts receivable turnover ratio for YR 2 and YR 3. Compare the two results and give a possible explanation for any significant change.

Question

The following information is from the financial statements of Exquisite Ensembles:
 $$\begin{array} { | l | r | r | r | } 
\hline & \text { YR 3 } & \text { YR 2 } & \text { YR 1 } \
\hline \text { Net sales } & \$ 1,260,000 & \$ 1,020,000 & \$ 850,000 \
\hline \text { Accounts receivable (Dec 31) } & 92,800 & 88,000 & 84,200 \
\hline
\end{array}$$ Calculate Exquisite Ensembles' accounts receivable turnover ratio for YR 2 and YR 3. Compare the two results and give a possible explanation for any significant change.

Quizplus · Accepted Answer

The Answer of The following information is from the financial statements of Exquisite Ensembles:
 $$\begin{array} { | l | r | r | r | } 
\hline & \text { YR 3 } & \text { YR 2 } & \text { YR 1 } \
\hline \text { Net sales } & \$ 1,260,000 & \$ 1,020,000 & \$ 850,000 \
\hline \text { Accounts receivable (Dec 31) } & 92,800 & 88,000 & 84,200 \
\hline
\end{array}$$ Calculate Exquisite Ensembles' accounts receivable turnover ratio for YR 2 and YR 3. Compare the two results and give a possible explanation for any significant change.

The Following Information Is from the Financial Statements of Exquisite