The Following Data Are Taken from the Financial Statements of Dands

Essay

The following data are taken from the financial statements of Dands Company: $\begin{array}{l}\begin{array}{lll}&2017&2016\\\text { Monthly average accounts receivable } & \$ 565,000 & \$ 700,000 \\\text { Net sales on account } & \$ 6,200,000 & \$ 7,000,000\end{array}\\\text { Terms for all sales are } 2 / 10 \mathrm{n} / 30\end{array}$ Instructions
(a) Compute the accounts receivable turnover and the average collection period for both years.
(b) What conclusion can an analyst draw about the management of the accounts receivable?