Assume that Hickory Company has the following data related to its accounts receivable:
|
2,002 |
2003 |
|
|
Net sales. |
1,425,000 |
$1,650,000 |
|
Net receivables: |
||
|
Beginning |
375,000 |
333,500 |
|
End of year |
$420,000 |
375,000 |
Use these data to compute accounts receivable turnover ratios and average collection periods for 2002 and 2003. Based on your analysis, is Hickory Company managing its receivables better or worse in 2003 than it did in 2002?