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:

Trusting Relationships

Bonds between individuals or groups characterized by confidence, reliability, and mutual respect, often fundamental for successful cooperation.

Delegate

In organizational contexts, to assign responsibility or authority from one person to another to carry out specific activities, while the original person retains the final accountability for the outcome.

Group Development Process

A sequence of stages through which a group passes as it forms, starts to work together, matures in its relationships and activities, and possibly dissolves.

Conflict

A situation or process in which there is a disagreement, opposition, or clash between ideas, interests, or parties.