- Accounts Receivable Turnover And Days Sales In Receivables Classic Company Designs Markets And Distributes A Variety 1 (93.97 KiB) Viewed 43 times
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Accounts Receivable Turnover and Days' Sales in Receivables Classic Company designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The company's products include such brands as Polo by Classic, Classic Purple Label, Classic, Polo Jeans Co., and Chaps. Polo Classic reported the following for two recent years: For the Period Ending Year 2 Year 1 Sales $3,920,830 $3,878,125 Accounts receivable 470,850 485,450 Assume that accounts receivable were $427,050 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to two decimal places. Year 2: Year 1: b. Compute the days' sales in receivables for Year 2 and Year 1. Round your final answers to one decimal place. Use 365 days per year in your calculations. Year 2: days Year 1: days c. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) change. The change in the days' sales in receivables is a(n) in the efficiency of collecting accounts receivable and is a(n) change.