The following data are taken from the comparative balance sheets of Grayling Company. Compute and interpret its accounts receivable turnover for Year 2. Competitors average a turnover of 7.5. How is the company doing in relation to its competitors?
$$\begin{array} { l l l }
& \text { Year 2 } & \text { Year } 1 \
\text { Accounts receivable, net } & 180,230 & 220,450 \
\text { Net sales } & 1,500,750 & 1,495,600
\end{array}$$

Question

The following data are taken from the comparative balance sheets of Grayling Company. Compute and interpret its accounts receivable turnover for Year 2. Competitors average a turnover of 7.5. How is the company doing in relation to its competitors?
 $$\begin{array} { l l l } 
& \text { Year 2 } & \text { Year } 1 \
\text { Accounts receivable, net } & 180,230 & 220,450 \
\text { Net sales } & 1,500,750 & 1,495,600
\end{array}$$

Quizplus · Accepted Answer

The Answer of The following data are taken from the comparative balance sheets of Grayling Company. Compute and interpret its accounts receivable turnover for Year 2. Competitors average a turnover of 7.5. How is the company doing in relation to its competitors?
 $$\begin{array} { l l l } 
& \text { Year 2 } & \text { Year } 1 \
\text { Accounts receivable, net } & 180,230 & 220,450 \
\text { Net sales } & 1,500,750 & 1,495,600
\end{array}$$

The Following Data Are Taken from the Comparative Balance Sheets