Based on the Following Data and Using a 365-Day Year

question 74

Essay

Based on the following data and using a 365-day year, compute
(a) the accounts receivable turnover and
(b) days' sales in receivables for Year 2. Round to two decimal places. The industry average turnover is 20 times during the year, and the days' sales in receivables averages 25.
(c) Comment on this situation. $\begin{array}{lr}12 / 31 / \text { Year } 1 \text { accounts receivable } & 100,000 \\12 / 31 / \text { Year } 2 \text { accounts receivable } & 70,000 \\\text { For the year ended } 12 / 31 / \text { Year } 1 \text {, sales } & 1,050,000 \\\text { For the year ended } 12 / 31 / \text { Year } 2 \text {, sales } & 1,200,000\end{array}$

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Definitions:

Employee Wellness Programs

Initiatives and support systems provided by employers to promote health and well-being among their staff.

Healthy Habits

Practices or behaviors that are conducive to maintaining or improving one's physical and mental health.

Corporate Reputation

The collective perceptions and evaluations of a company's actions and its ability to meet stakeholders' expectations over time.

Workforce Diversity

Refers to a diverse set of employees in an organization, including differences in race, ethnicity, gender, age, religion, ability, and sexual orientation.