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

question 168

Essay

Based on the following data and using a 365-day year,compute
(a)the accounts receivable turnover and
(b)days' sales in receivables for Year 2.Round to two decimal places.The industry average turnover is 20 times during the year,and the days' sales in receivables averages 25.
(c)Comment on this situation.

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Definitions:

Short Run

The short run in economics is a time period during which at least one input, such as plant size, is fixed and cannot be changed by the firm.

Fixed Plant Capacity

The maximum output level that a plant can achieve with the current facilities and resources over a specific period.

Industry Entry

The act or process of beginning to compete in a new or existing market as a new participant.

Nonlabor Resources

Assets or materials used in production that do not involve human labor, such as machinery, raw materials, and buildings.