The following data are taken from the financial statements of Mercado Decorations:
Accounts receivable (net), end of year
Net sales on account
(a) Compute for each year (1) the receivables turnover and (2) the average collection period. At the end of 2007, accounts receivable (net) was $490,000.
(b) What conclusions about the management of accounts receivable can be drawn from these data?