Receivable turnover measures how quickly accounts receivable are collected. It also ascertains the efficiency of management in the collection of receivables, a too-high turnover suggests that management should consider less strict credit terms, and too-low credit terms suggest that management should implement credit terms more strictly. The accounts receivable turnover for year 2 and year 3.

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Chapter 9, Problem 23E

a

To determine

Concept Introduction: Receivable turnover measures how quickly accounts receivable are collected. It also ascertains the efficiency of management in the collection of receivables, a too-high turnover suggests that management should consider less strict credit terms, and too-low credit terms suggest that management should implement credit terms more strictly.

The accounts receivable turnover for year 2 and year 3.

b

To determine

Concept Introduction: Receivable turnover measures how quickly accounts receivable are collected. It also ascertains the efficiency of management in the collection of receivables, a too-high turnover suggests that management should consider less strict credit terms, and too-low credit terms suggest that management should implement credit terms more strictly.

The performance of R in terms of accounts receivable turnover when compared with competitors.

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