The following data are for Rocky Company.
Current Year / 1 Year Ago
Accounts receivable, net $ 153,400. / $ 138,500
Net sales 861,105. / 910,600
(a) Compute Rocky’s accounts receivable turnover.
(b) If its competitor, Dixon, has an accounts receivable turnover of 7. 5, which company appears to be doing a better job of managing its receivables?
