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.

Question

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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The Answer of 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.

A Company Reports the Following Results in Its Financial Statements