The Following Data Are Taken from the Financial Statements of Dands

question 32

Essay

The following data are taken from the financial statements of Dands Company: $\begin{array}{l}\begin{array}{lll}&2017&2016\\\text { Monthly average accounts receivable } & \$ 565,000 & \$ 700,000 \\\text { Net sales on account } & \$ 6,200,000 & \$ 7,000,000\end{array}\\\text { Terms for all sales are } 2 / 10 \mathrm{n} / 30\end{array}$ Instructions
(a) Compute the accounts receivable turnover and the average collection period for both years.
(b) What conclusion can an analyst draw about the management of the accounts receivable?

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Definitions:

Gunshots

The sounds or discharge of firearms, often used in the context of crime, hunting, or recreational shooting.

Screams

Loud, sharp sounds made by someone forcefully expressing fear, pain, or excitement.

Committed a Crime

The act of engaging in an action that violates a law and is subject to legal prosecution and punishment.

Failure

The lack of success in achieving a desired outcome or meeting a set objective.