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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

Financial Statement Data for the Years Ended December 31 for Parker