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:

Lanolin

A natural grease obtained from sheep's wool, used as a moisturizer in skincare products.

Breastfeed

The act of feeding a baby or young child with milk from a woman's breast, which provides ideal nutrition and supports infant growth and development.

Clinical Breast Exam

A physical examination performed by a healthcare provider to check for breast lumps or other changes, as a method of detecting possible breast cancer.