Based on the following data and using a 365-day year: 12/31/Year 1 accounts receivable $ 100,000...

Based on the following data and using a 365-day year:

12/31/Year 1 accounts receivable	$ 100,000
12/31/Year 2 accounts receivable	70,000
For the year ended 12/31/Year 1, net sales	1,050,000
For the year ended 12/31/Year 2, net sales	1,200,000

a. Compute the accounts receivable turnover. Round your answer to two decimal places.

b. Compute the number of days' sales in receivables for year 2. Round your answer to two decimal places.
days

c. The industry average turnover is 20 times during the year, and the number of days' sales in receivables averages 25. How does this situation compare to the industry average?

Is it slightly better or slightly worse than the average?

Expert Solution

Answer to Part a, b and c:

ekkarill92 answered 1 month ago

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