
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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I’m stock

Transcribed Image Text:Accounts receivable turnover and days' sales in receivables
For two recent years, Robinhood Company reported the following:
20Y9
20Y8
Sales
$8,646,000
$7,316,000
Accounts receivable:
Beginning of year
660,000
580,000
End of year
650,000
660,000
a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal
20Y8:
X
20Y9:
X
b. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculati
20Y8:
X days
20Y9:
X days
c. Are the changes in the accounts receivable turnover and days' sales in receivables from 2018 to 20
Favorable
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Accounts Receivable Turnover = Sales/Average Accounts Receivable
Number of Days' Sales in Receivables = Average Accounts Receivable/Average Daily Sales
Check My Work
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