Solution-Calculate the account receivable turnover

Calculate the account receivable turnover

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Reference no: EM132768124

Problem - You review the below information for your daycare business and it reveals decreasing profits despite increasing sales. You hire an analyst who highlights several points, including that "Accounts receivable turnover is too low. Tighter credit policies are recommended along with discontinuing service to those most delayed in payments."

	2020	2019	2018
Net sales	$1,552,500	$1,088,500	$986,000
Accounts receivable	437,500	99,500	72,750
Profit	468,000	488,000	500,900

Required - Calculate the account receivable turnover for 2020 and 2019. Indicate whether the change in accounts receivable turnover is favourable or unfavourable.

Reference no: EM132768124

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Calculate the account receivable turnover

Reference no: EM132768124

Reference no: EM132768124

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