Accounts receivable turnover and days’ sales in receivables
For two recent years, Robinhood Company reported the
following:
20Y9
20Y8
Sales
$7,357,500
$6,195,000
Accounts receivable:
Beginning of year
550,000
500,000
End of year
540,000
550,000
a. Determine the accounts receivable turnover
for 20Y9 and 20Y8. Round answers to one decimal place.
20Y8:
20Y9:
b. Determine the days’ sales in receivables for
20Y9 and 20Y8. Use 365 days and round all calculations to one
decimal place.
20Y8: days
20Y9: days
c. Are the changes...