The following data are taken from the financial statements of Dands Company: $\begin{array}{l}
\begin{array}{lll}
&2017&2016\
\text { Monthly average accounts receivable } & \$ 565,000 & \$ 700,000 \
\text { Net sales on account } & \$ 6,200,000 & \$ 7,000,000
\end{array}\
\text { Terms for all sales are } 2 / 10 \mathrm{n} / 30
\end{array}$ Instructions
(a) Compute the accounts receivable turnover and the average collection period for both years.
(b) What conclusion can an analyst draw about the management of the accounts receivable?

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The Answer of The following data are taken from the financial statements of Dands Company: $\begin{array}{l}
\begin{array}{lll}
&2017&2016\
\text { Monthly average accounts receivable } & \$ 565,000 & \$ 700,000 \
\text { Net sales on account } & \$ 6,200,000 & \$ 7,000,000
\end{array}\
\text { Terms for all sales are } 2 / 10 \mathrm{n} / 30
\end{array}$ Instructions
(a) Compute the accounts receivable turnover and the average collection period for both years.
(b) What conclusion can an analyst draw about the management of the accounts receivable?

The Following Data Are Taken from the Financial Statements of Dands