The Following Data Exists for Mather Company $\begin{array}{lrr}&2014&2013\\\text { Accounts Receivable } & \$ 80,000 & \$ 70,000 \\\text { Net Sales } & 560,000 & 410,000\end{array}$

question 22

Essay

The following data exists for Mather Company. $\begin{array}{lrr}&2014&2013\\\text { Accounts Receivable } & \$ 80,000 & \$ 70,000 \\\text { Net Sales } & 560,000 & 410,000\end{array}$ Calculate the accounts receivable turnover and the average collection period for accounts receivable in days for 2014.

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Definitions:

DOL

Department of Labor, a U.S. government department responsible for occupational safety, wage standards, unemployment insurance benefits, re-employment services, and some economic statistics.

Financial Leverage

The use of debt to increase the potential return of an investment.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue, indicating the degree to which fixed costs affect profitability.

Sales Revenue

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.