data are taken from the financial statements of Dands Company:
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
(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?