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The Following Data Are Taken from the Financial Statements of Duffy

Question 55

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The following data are taken from the financial statements of Duffy Limited: 20142013 Monthly average accounts receivable $520,000$550,000 Net sales on account 5,980,0004,950,000 Terms for all sales are n/30 \begin{array}{lrr}&2014&2013\\\text { Monthly average accounts receivable } & \$ 520,000 & \$ 550,000 \\\text { Net sales on account } & 5,980,000 & 4,950,000\\\text { Terms for all sales are n/30 }\end{array} Instructions
a. Calculate the receivables turnover and the collection period for both years.
b. What conclusion can an analyst draw about the management of the accounts receivable?

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