Accounts receivable turnover and day’s sales in receivables Obj. 8 Chiro-Solutions Company reported the following for two recent years:

20Y2 20Y1 Sales $2,912,000 $2,958,000 Accounts receivable:

Beginning of year 300,000 280,000 End of year 340,000 300,000

a. Determine the accounts receivable turnover for 20Y2 and 20Y1. Round answers to one decimal place.

b. Determine the days’ sales in receivables for 20Y2 and 20Y1. Use 365 days and round all calculations to one decimal place.

c. Are the changes in the accounts receivable turnover and days’ sales in receivables from 20Y1 to 20Y2 favorable or unfavorable?

AppendixLO1