A Company Reports the Following Results in Its Financial Statements

question 87

Essay

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

Sales Presentation

A structured dialogue or demonstration aimed at persuading a potential customer to purchase a product or service.

Initial Sales Call

The first contact made by a sales representative to a potential customer, aiming to introduce the product or service and gauge interest.

Inbound Marketing

Marketing activities that draw the attention of customers through blogs, Twitter, LinkedIn, and other online sources, rather than using more traditional activities that require having to go out to get customers’ attention, such as making a sales call.

Preapproach Stage

A phase in the sales process where research and planning are conducted before making initial contact with a prospective customer.