Data:

1988 1989 Change

% $
Sales 1,697 2,013 18.62% 316
AR 171 222 29.82% 51

TO AR = AR/Sales x 360 days

TO AR 1988 = (171/1697)*360
36.28 days

TO AR 1989 = (222/2013)*360
39.70 days

% change of sales 18,62% should be for % change in AR too

Collection period of AR in 1988 (36,28 days) should be the same in 1989
AR/sales in 1988 is 10,80% should be the same for change in AR/change in sales too

1. If % change in AR should be 18,62% AR in 1989 should be:

(AR - 171)/171 = 18,62%
AR - 171 = 31.84
AR = 202.84
There is excess AR in 1989 about $19.16

2. If collection period in 1989 should be 36,28 days, AR should be:

(AR/2013)*360 = 36.28 days
360 AR = 73,023.15
AR = 202.84
There is excess AR in 1989 about $19.16

3. If AR/Sales in 1988 is 10,08% meanwhile change in AR/change in sales should be the same.
(AR/sales) in 1988 = 10.08%
(change in AR/change in sales) = 16.14%
There is excess change in AR about 6.06% or $19.16
ange in sales too

hould be the same.