Posted by pioneer2006 on .
Assume that Hickory Copany has the following data related to its accounts receivable:
net sales $1,425,000 $1,650,000
beginning of 2005:375,000
beginning of 2006:333,500
end of 2005:420,000
end of 2006:375,000
Use these data to compute accounts receivable turnover ratios and average collection periods for 2005 and 2006. Based on your analysis, is Hickory Company managing its receivables better or worse in 2006 than it did in 2005?