Based on the Following Data and Using a 365-Day Year

question 37

Essay

Based on the following data and using a 365-day year, compute (a) the accounts receivable turnover and (b) the number of days' sales in receivables for year 2 to 2 decimal places. The industry average turnover is 20 times during the year, and the number of days' sales in receivables averages 25. (c) Comment on this situation. $\begin{array}{lr}12 / 31 / \text { Year } 1 \text { accounts receivable } & 100,000 \\12 / 31 / \text { Year } 2 \text { accounts receivable } & 70,000 \\\text { For the year ended } 12 / 31 / \text { Year } 1 \text {, sales } & 1,050,000 \\\text { For the year ended } 12 / 31 / \text { Year } 2 \text {, sales } & 1,200,000\end{array}$

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Definitions:

Unionization

The process of organizing workers into a union, a collective organization that represents them in negotiations with employers regarding labor conditions.

Canada

A country in North America known for its vast landscapes, multicultural diversity, and as the second-largest country in the world by total area.

United States

A country located primarily in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Resource Mobilization

The process of acquiring, organizing, and deploying resources (such as money, volunteers, and information) for projects or causes.