The Following Information Is Taken from the Adjusted Trial Balance

Essay

The following information is taken from the adjusted trial balance of the Studio Art Supply Company on 12/31/16:
Studio Art Supply offers all of its charge customers the credit terms,2/10,n/30.
Required: a)Compute the accounts receivable turnover.
b)Compute the average number of days to collect accounts receivable.Round your answer to a whole number for days.
c)Comment on the meaning of these ratios and specifically on how well this firm is managing its accounts receivable.