Question - For two recent years, Rosco Co. reported the following:
|
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Year 2
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Year 1
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|
Sales
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$7,478,120
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$7,135,020
|
|
Accounts receivable
|
726,350
|
711,750
|
Assume that the accounts receivable were $609,550 at the beginning of Year 1.
a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place.
b. Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 days per year in your calculations.