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Unformatted text preview: by dividing 365 by the receivables turnover ratio. 20X1 20X0 Receivables Turnover 6.8 times 5.3 times Average Collection Period 53.7 days 68.9 days The decrease in the average collection period is favorable. If the credit period is 60 days, the 20X1 average is very good. However, if the credit period is 30 days, the company needs to review its collection efforts....
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- Spring '09