Financial Statement Data for the Years Ended December 31 for Parker

question 66

Essay

Financial statement data for the years ended December 31 for Parker Corporation are as follows:​Current Year Prior YearSales $2,595,600 $2,409,500Accounts receivable:Beginning of year 390,000 400,000End of year 434,000 390,000​
(a) Determine the accounts receivable turnover for each year.Round to one decimal place.
(b) Determine the days' sales in receivables for each year.Round to whole days.
(c) Does the change in accounts receivable turnover and days' sales in receivables fromthe first year to the second year indicate a favorable or unfavorable trend?

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Definitions:

Walter Cannon

An influential American physiologist known for his work on the fight-or-flight response and coining the term "homeostasis" for the body's attempt to maintain internal stability.

Feel Sorry

Experiencing regret, guilt, or sadness over an action or situation, often wishing one had acted differently.

Cannon-Bard Theory

A theory of emotion that proposes emotions and physiological responses occur simultaneously, and one does not cause the other.

Schachter and Singer's

Psychologists who proposed the two-factor theory of emotion, suggesting that emotion is based on physiological arousal and cognitive labels.