Accounts receivable turnover and days’ sales in receivables Obj. 8 For two recent years, Robinhood Company reported the following:

20Y9 20Y8 Sales $7,906,000 $6,726,000 Accounts receivable:

Beginning of year 600,000 540,000 End of year 580,000 600,000

a. Determine the accounts receivable turnover for 20Y9 and 20Y8. Round answers to one decimal place.

b. Determine the days’ sales in receivables for 20Y9 and 20Y8. 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 20Y8 to 20Y9 favorable or unfavorable?

AppendixLO1