Accounts receivable turnover and days' sales in receivables
For two recent years, Robinhood Company reported the following:
2019
2018
Sales
$7,695,000 $6,325,000
Accounts receivable:
Beginning of year
End of year
580,000
560,000
520,000
580,000
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:
days
days
c. Are the changes in the accounts receivable turnover and days' sales in receivables from 20Y8 to 20Y9 favorable or unfavorable?
