A company reports the following results in its financial statements:
$$\begin{array} { l l l l }
& \text { Year } 3 & \text { Year } 2 & \text { Year } 1 \
\text { Net Sales } & \$ 2,500,000 & \$ 2,100,000 & \$ 1,900,000 \
\text { Accounts receivable, Ending Balance } & 172,000 & 167,000 & 165,000
\end{array}$$

Calculate the company 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:
 $$\begin{array} { l l l l } 
& \text { Year } 3 & \text { Year } 2 & \text { Year } 1 \
\text { Net Sales } & \$ 2,500,000 & \$ 2,100,000 & \$ 1,900,000 \
\text { Accounts receivable, Ending Balance } & 172,000 & 167,000 & 165,000
\end{array}$$
 
Calculate the company 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:
 $$\begin{array} { l l l l } 
& \text { Year } 3 & \text { Year } 2 & \text { Year } 1 \
\text { Net Sales } & \$ 2,500,000 & \$ 2,100,000 & \$ 1,900,000 \
\text { Accounts receivable, Ending Balance } & 172,000 & 167,000 & 165,000
\end{array}$$
 
Calculate the company 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