Financial Statement Data for the Years Ended December 31 for Parker

question 29

Essay

Financial statement data for the years ended December 31 for Parker Corporation are as follows:

$\begin{array}{lrr}&\underline {\text { Current Year }}&\underline {\text { Prior Year}}\\\text { Sales } & \$ 2,595,600 & \$ 2,409,500 \\\text { Accounts receivable: } & & \\\text { Beginning of the year } & \$ 390,000 & \$ 400,000 \\\text { End of the year } & 434,000 & 390,000\end{array}$
a Determine the accounts receivable turnover for each year.Round to one decimal place.
b Determine the number of days' sales in receivables for each year.Round to whole days.
c Does the change in accounts receivable turnover and number of days' sales in receivables from the first year to the second year indicate a favorable or unfavorable trend?

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Definitions:

Verbal Information

Information conveyed through spoken words, language, or other vocalized forms.

Consolidated

Made stronger, more solid, or united; typically refers to the process of combining various elements into a single, coherent structure.

Short-Term Working Memory

A limited-capacity cognitive framework that temporarily preserves information for processing activities.

Episodic Memory

Episodic memory is the type of long-term, declarative memory that stores personal experiences and events, including the contexts and emotions associated with them.