This paper circulates around the core theme of Compute the accounts receivable turnover and the average collection period for both years. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
The following
data are taken from the financial statements of Dands Company:
2015 2014
Monthly average accounts receivable $ 565,000 $ 700,000
Net sales on account $6,200,000 $7,000,000
Terms for all sales are 2/10, n/30
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?
