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The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/55. 2014 2013 2012 Accounts receivable, end of year

The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/55.

  2014 2013 2012
Accounts receivable, end of year $175,000   $190,000   $204,200  
Net sales on account 1,241,000   1,222,020      

a. For 2013 and 2014, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year.

  2014 2013
1. Accounts receivable turnover        
2. Number of days' sales in receivables   days   days

b. The collection of accounts receivable has SelectimproveddeterioratedItem 5 . This can be seen in both the SelectincreasedecreaseItem 6 in accounts receivable turnover and the SelectincreasedecreaseItem 7 in the collection period.

 

Jun 03 2021 View more View Less

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