The following data are taken from the financial statements of Duffy Limited: $\begin{array}{lrr}&2014&2013\
\text { Monthly average accounts receivable } & \$ 520,000 & \$ 550,000 \
\text { Net sales on account } & 5,980,000 & 4,950,000\\text { Terms for all sales are n/30 }
\end{array}$ Instructions
a. Calculate the receivables turnover and the collection period for both years.
b. What conclusion can an analyst draw about the management of the accounts receivable?

Question

The following data are taken from the financial statements of Duffy Limited: $\begin{array}{lrr}&2014&2013\
\text { Monthly average accounts receivable } & \$ 520,000 & \$ 550,000 \
\text { Net sales on account } & 5,980,000 & 4,950,000\\text { Terms for all sales are n/30 }
\end{array}$ Instructions 
a. Calculate the receivables turnover and the collection period for both years.
b. What conclusion can an analyst draw about the management of the accounts receivable?

Quizplus · Accepted Answer

The Answer of The following data are taken from the financial statements of Duffy Limited: $\begin{array}{lrr}&2014&2013\
\text { Monthly average accounts receivable } & \$ 520,000 & \$ 550,000 \
\text { Net sales on account } & 5,980,000 & 4,950,000\\text { Terms for all sales are n/30 }
\end{array}$ Instructions 
a. Calculate the receivables turnover and the 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 Duffy