The following annual account balances are taken from Armour Sports QS 6-7 at December 31.

Days’ sales uncollected Franco Company is a rapidly growing start-up business. Its recordkeeper, who was hired one year ago, left town after the company’s manager discovered that a large sum of money had disappeared over the past six months. An audit disclosed that the recordkeeper had written and signed several checks made payable to her fiancé and then recorded the checks as salaries expense. The fiancé, who cashed the checks but never worked for the company, left town with the recordkeeper. As a result, the company incurred an uninsured loss of $184,000. Evaluate Franco’s internal control system and indicate which principles of internal control appear to have been ignored.

2008 2007 Accounts receivable . . . . . . . $ 85,692 $ 80,485 Net sales . . . . . . . . . . . . . . . 2,691,855 2,396,858 What is the change in the number of days’ sales uncollected between years 2007 and 2008? According to this analysis, is the company’s collection of receivables improving? Explain your answer.