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A Company Reports the Following Results in Its Financial Statements

question 132

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A company reports the following results in its financial statements:
 Year 3  Year 2  Year 1  Net sales $2,500,000$2,050,000$1,900,000 Accounts receivable, ending balance 175,000167,000165,000\begin{array} { | l | c | c | c | } \hline & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\\hline \text { Net sales } & \$ 2,500,000 & \$ 2,050,000 & \$ 1,900,000 \\\hline \text { Accounts receivable, ending balance } & 175,000 & 167,000 & 165,000 \\\hline\end{array}
Calculate this company's 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:

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