A Company Reports the Following Results in Its Financial Statements

question 53

Essay

A company reports the following results in its financial statements:
$$\begin{array} { l l l l } & \text { Year } 3 & \text { Year } 2 & \text { Year } 1 \\\text { Net Sales } & \$ 2,500,000 & \$ 2,100,000 & \$ 1,900,000 \\\text { Accounts receivable, Ending Balance } & 172,000 & 167,000 & 165,000\end{array}$$

Calculate the company accounts receivable turnover for Year 2 and Year 3.Compare these two results and give a possible explanation for any significant change.

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Definitions:

Job Responsibilities

Specific duties and tasks that an employee is expected to perform as part of their role within an organization.

Davis-Bacon Act

A United States federal law that requires paying the local prevailing wages on public works projects for laborers and mechanics.

Walsh-Healy Public Contracts Act

A U.S. federal law that requires minimum wage, maximum hours, and safety and health standards for contractors producing goods for the government.