The Following Data Are Taken from the Financial Statements of Stuffy

question 140

Essay

The following data are taken from the financial statements of Stuffy Limited: $\begin{array}{lll}&2021&2020\\\text { Monthly aver age accounts receivable } & \$ 520,000 & \$ 550,000 \\\text { Net sales on account } & 5,980,000 & 4,950,000\end{array}$ Terms for all sales are n/30
Instructions
a) Calculate the receivables turnover and the collection period for both years.
b) What conclusion can an analyst draw about the management of the accounts receivable?

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Definitions:

Club Sponsor

An individual or organization that supports a club, team, or event, usually through financial contributions, products, or services.

Computer Clocks

Internal timekeeping devices within computers that regulate the timing of all computer operations.

Production Cost

The total expense incurred in the manufacture of products, including raw materials, labor, and overhead costs.

Club Sponsor

An entity or individual that provides support, often financial, to a club, typically for marketing, funding events, or activities.