20Y3
20Y2
20Y1
Accounts receivable, end of year
$705,000 $630,000 $595,000
Sales on account
5,609,000 4,602,000
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your
answers in the questions below.
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a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the days' sales in receivables. Assume a 365-day year. Do not
round intermediate calculations. Round your answers to one decimal place.
1. Accounts receivable turnover
2. Days' sales in receivables
20Y3
8.4 ?
43.6 X days
20Y2
7.5 ?
48.6 days
b. The collection of accounts receivable has improved. This can be seen in both the increase
turnover and the decrease
? in accounts receivable
? in the collection period.