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Question - Accounts receivable turnover and days' sales in receivables - For two recent years, Robinhood Company reported the following:
20Y9
20Y8
Sales
$8,046,500
$6,728,000
Accounts receivable:
Beginning of year
610,000
550,000
End of year
600,000
Required -
a. Determine the accounts receivable turnover for 20Y9 and 20Y8.
b. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place.
c. Are the changes in the accounts receivable turnover and days' sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?
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