The following data are taken from the financial statements:
$\begin{array}{lrr}
& { \text { Current }}& { \text {Preceding}}\
& \underline { \text { Year }}& \underline { \text { Year }}\
\text { Average accounts receivable net } & \$ 123,000 & \$ 95,000 \
\text { Accounts receivable net, end of year } & 129,012 & 87,516 \
\text { Sales on account } & 950,000 & 825,000
\end{array}$
a. Assuming that credit terms on all sales are n/45, determine for each year 1 the accounts receivable turnover and 2 the number of days' sales in receivables.
Round intermediate calculations to whole numbers and final answers to two decimal places.
b. Comment on any significant trends revealed by the data.

Question

The following data are taken from the financial statements:
 $\begin{array}{lrr}
&  { \text { Current }}&  { \text {Preceding}}\
& \underline { \text { Year  }}& \underline { \text { Year  }}\
\text { Average accounts receivable net } & \$ 123,000 & \$ 95,000 \
\text { Accounts receivable net, end of year } & 129,012 & 87,516 \
\text { Sales on account } & 950,000 & 825,000
\end{array}$ 
a.	Assuming that credit terms on all sales are n/45, determine for each year 1 the accounts receivable turnover and 2 the number of days' sales in receivables.
Round intermediate calculations to whole numbers and final answers to two decimal places.
b.	Comment on any significant trends revealed by the data.

Quizplus · Accepted Answer

The Answer of The following data are taken from the financial statements:
 $\begin{array}{lrr}
&  { \text { Current }}&  { \text {Preceding}}\
& \underline { \text { Year  }}& \underline { \text { Year  }}\
\text { Average accounts receivable net } & \$ 123,000 & \$ 95,000 \
\text { Accounts receivable net, end of year } & 129,012 & 87,516 \
\text { Sales on account } & 950,000 & 825,000
\end{array}$ 
a.	Assuming that credit terms on all sales are n/45, determine for each year 1 the accounts receivable turnover and 2 the number of days' sales in receivables.
Round intermediate calculations to whole numbers and final answers to two decimal places.
b.	Comment on any significant trends revealed by the data.

The Following Data Are Taken from the Financial Statements A Assuming That Credit Terms on All Sales Are N/45, Determine