The Following Data Are Taken from the Comparative Balance Sheets

Essay

The following data are taken from the comparative balance sheets of Grayling Company. Compute and interpret its accounts receivable turnover for Year 2. Competitors average a turnover of 7.5. How is the company doing in relation to its competitors?
$$\begin{array} { l l l } & \text { Year 2 } & \text { Year } 1 \\\text { Accounts receivable, net } & 180,230 & 220,450 \\\text { Net sales } & 1,500,750 & 1,495,600\end{array}$$