The Following Information Is from the Financial Statements of Exquisite

question 105

Essay

The following information is from the financial statements of Exquisite Ensembles:
$$\begin{array} { | l | r | r | r | } \hline & \text { YR 3 } & \text { YR 2 } & \text { YR 1 } \\\hline \text { Net sales } & \$ 1,260,000 & \$ 1,020,000 & \$ 850,000 \\\hline \text { Accounts receivable (Dec 31) } & 92,800 & 88,000 & 84,200 \\\hline\end{array}$$ Calculate Exquisite Ensembles' accounts receivable turnover ratio for YR 2 and YR 3. Compare the two results and give a possible explanation for any significant change.

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Definitions:

Respective Charges

The specific electrical charges on particles or objects, usually defined as positive or negative, which determine their electromagnetic interactions.

Solvent

A substance, typically a liquid, capable of dissolving other substances to form a solution.

Water

A colorless, tasteless, and odorless substance essential for most plant and animal life and the most widely used solvent.

Solvent

A substance, typically a liquid, capable of dissolving other substances (solutes) to form a solution.