80.2K
Verified Solution
Link Copied!
Accounts receivable turnover and days sales in receivables
For two recent years, Robinhood Company reported the following:
| | 20Y9 | 20Y8 |
| Sales | $7,705,000 | $6,380,000 |
| Accounts receivable: | | |
| Beginning of year | 580,000 | 520,000 |
| End of year | 570,000 | 580,000 |
a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place.
20Y8: fill in the blank 1
20Y9: fill in the blank 2
b. Determine the days sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place.
20Y8: fill in the blank 3 days
20Y9: fill in the blank 4 days
c. Are the changes in the accounts receivable turnover and days sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?
Favorable
Answer & Explanation
Solved by verified expert
