Reference no: EM132469960

Accounts receivable turnover and days' sales in receivables

Financial statement data for years ending December 31 for Chiro-Solutions Company follow:

                                   20Y2                20Y1

Sales                        $2,912,000         $2,958,000

Accounts receivable:

Beginning of year      300,000                 280,000

End of year            340,000                   300,000

Question a. Determine the accounts receivable turnover for 20Y2 and 20Y1. If required, round the final answers to one decimal place.

Accounts

Receivable

Turnover

20Y2:

20Y1 :

Question b. Determine the days' sales in receivables for 20Y2 and 20Y1. Use 365 days, if required round the final answers to one decimal place.

Days' Sales

in Receivables

20Y2___days

20Y1___days

Question c. Does the change in accounts receivable turnover and the days' sales in receivables from 20Y1 to 20Y2 indicate a favorable or unfavorable change?

A.Favorable

B.Unfavorable