Current Attempt in ProgressThe financial statements of Minnesota Mining and Manufacturing Company (3M) report net sales of $20.0 billion. Accounts receivable (net) are $2.7 billionat the beginning of the year and $2.8 billion at the end of the year. Assume all sales were on credit.Compute 3M's accounts receivable turnover. (Round answer to 1 decimal place, e.g. 2.5.)Accounts Receivable TurnovertimeseTextbook and MediaCompute 3M's average collection period for accounts receivable in days. (Round answer to 0 decimal places, e.g. 50. Use 365 days for calculation.)Average Collection PerioddayseTextbook and Media

Accounts receivable turnover: Accounts receivable turnover is a liquidity measure of accounts…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounts receivable turnover and days' sales in receivables For two recent years, Robinhood Company reported the following: 20Y9 20Y8 $8,514,000 $7,134,000 Sales Accounts receivable: Beginning of year 580,000 End of year 650,000 a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place. 20Y8: 20Y9: b. Determine the days' sales in receivables for 20Y9 and 20Y8. Use 365 days and round all calculations to one decimal place. days 20Y8: 20Y9: 650,000 640,000 days c. Are the changes in the accounts receivable turnover and days' sales in receivables from 20Y8 to 20Y9 favorable or unfavorable? Favorable
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