The following data are taken from the financial statements of Morino Company

Brief Exercise 15-11 (BE15-11) The following data are taken from the financial statements of Morino Company.

2009 2008
Accounts receivable (net), end of year $ 550,000 520,000
Net sales on account 3,960,000 3,100,000
Terms for all sales are 1/10, n/60.

(a) Compute for each year (1) the receivables turnover and (2) the average collection period. At the end of 2007, accounts receivable (net) was $480,000.
(b) What conclusions about the management of accounts receivable can be drawn from these data?

Click here for the solution: The following data are taken from the financial statements of Morino Company