Accounts receivable analysis OBJ. 2 The following data are taken from the financial statements of Krawcheck Inc. Terms of all sales are 2/10, n/55.

2016 2015 2014 Accounts receivable, end of year $ 500,000 $ 475,000 $440,000 Sales on account 3,412,500 2,836,500

a. For 2015 and 2016, determine (1) the accounts receivable turnover and (2) the number of days’ sales in receivables. Round to the nearest dollar and one decimal place.

b. What conclusions can be drawn from these data concerning accounts receivable and credit policies?