Presented below are selected data from the financial statements of Medtech Company for several years.

$\begin{array}{lrrr}&2019&2018&2017\
\text { Total assets } & \$ 487,500 & \$ 615,750 & \$ 600,000 \
\text { Net credit sales } & 600,000 & 487,500 & 540,000 \
\text { Accounts receivable } & 63,750 & 60,000 & 55,500 \
\text { Net income } & 11,250 & 65,000 & 9,000
\end{array}$
A) Calculate Medtech's accounts receivable turnover ratio for 2019 and 2018 .
B) What could have caused the change? Explain.

Question

Presented below are selected data from the financial statements of Medtech Company for several years.
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 $\begin{array}{lrrr}&2019&2018&2017\
\text { Total assets } & \$ 487,500 & \$ 615,750 & \$ 600,000 \
\text { Net credit sales } & 600,000 & 487,500 & 540,000 \
\text { Accounts receivable } & 63,750 & 60,000 & 55,500 \
\text { Net income } & 11,250 & 65,000 & 9,000
\end{array}$ ​
 A) Calculate Medtech's accounts receivable turnover ratio for 2019 and 2018 .
B) What could have caused the change? Explain.

Quizplus · Accepted Answer

The Answer of Presented below are selected data from the financial statements of Medtech Company for several years.
​
​
 $\begin{array}{lrrr}&2019&2018&2017\
\text { Total assets } & \$ 487,500 & \$ 615,750 & \$ 600,000 \
\text { Net credit sales } & 600,000 & 487,500 & 540,000 \
\text { Accounts receivable } & 63,750 & 60,000 & 55,500 \
\text { Net income } & 11,250 & 65,000 & 9,000
\end{array}$ ​
 A) Calculate Medtech's accounts receivable turnover ratio for 2019 and 2018 .
B) What could have caused the change? Explain.

Presented Below Are Selected Data from the Financial Statements of Medtech