Use the Selected Financial Information Provided Below to Answer the Following

question 220

Essay

Use the selected financial information provided below to answer the following questions.
$\begin{array}{lrrr}&\text { Year } 3&\text { Year } 2&\text { Year }1\\\text { Accounts receivable } & \$ 63,750 & \$ 60,000 &\$ 55,500 \\\text { Total assets } & 487,500 & 615,750 & 600,000 \\\text { Net credit sales } & 600,000 & 487,500 & 540,000 \\\text { Net income } & 11.250 & 65,000 & 9,000\end{array}$

A) Calculate the company's accounts recervable turnover ratid for Year 3 and Year 2

B) Determine the number of days it would take to turn over accounts receivable at December 31, Year 3 and Year 2.

C) What could have caused the change?

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Definitions:

Implied Authority

This refers to the power of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization’s agency agreement, even if not explicitly granted.

Duty of Accounting

The obligation of a party (usually a fiduciary) to keep accurate records and report financial activity to relevant stakeholders or authorities.

Agent Owe

The duty or obligation an agent has to act in the best interest of the principal, including loyalty, care, and full disclosure.

Principal

In finance, the principal is the initial amount of a loan or the amount of an investment excluding any interest or profit earned.