Compute the accounts receivable turnover and the average collection period for both years.

Compute the accounts receivable turnover and the average collection period for both years.

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?



Price: £ 45

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