A Company Reports the Following Results in Its Financial Statements

Essay

A company reports the following results in its financial statements:
Year 3 Year 2 Year 1
$$\begin{array} { l l l l } \text { Net Sales } & \$ 2,500,000 & \$ 2,100,000 & \$ 1,900,000 \\\text { Accounts receivable, Ending Balance } & 172,000 & 167,000 & 165,000\end{array}$$ Calculate the company accounts receivable turnover for Year 2 and Year 3. Compare these two results and give a possible explanation for any significant change.