Accounts receivable turnover and days’ sales in receivablesFor two recent years, Robinhood Company reported the following: 20Y920Y8Sales$8,370,000$6,961,500Accounts receivable: Beginning of year630,000560,000End of year610,000630,000a. 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: 20Y9: c. Are the changes in the accounts receivable turnover and days’ sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?

Accounts receivable turnover = Net Credit sales / Average account receivable Accounts receivable…

Answered: Accounts receivable turnover and days’…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9E

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Accounts receivable turnover and days’ sales in receivables

For two recent years, Robinhood Company reported the following:

20Y9 20Y8

Sales $8,370,000 $6,961,500

Accounts receivable:

Beginning of year 630,000 560,000

End of year 610,000 630,000

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:

20Y9:

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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